{"id":17656,"date":"2025-03-13T18:01:45","date_gmt":"2025-03-13T18:01:45","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=17656"},"modified":"2025-03-13T18:01:45","modified_gmt":"2025-03-13T18:01:45","slug":"bitcoins-role-in-defi-is-untapped-opportunity-binance-research-says","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=17656","title":{"rendered":"Bitcoin’s Role in DeFi Is ‘Untapped Opportunity,’ Binance Research Says"},"content":{"rendered":"
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Bitcoin’s (BTC) role in decentralized finance (DeFi) is growing as the world’s largest cryptocurrency evolves from more than just a store of value, Binance Research said in a report Thursday.<\/p>\n

The Bitcoin network is “evolving into a broader decentralized finance ecosystem with the emergence of Bitcoin DeFi,” analyst Moulik Nagesh wrote.<\/p>\n

This is a sector that “unlocks bitcoin’s capital efficiency” with the use of financial applications focused on lending, staking, stablecoins<\/a> and decentralized exchanges<\/a> (DEX’s), the report said.<\/p>\n

DeFi<\/a> is an umbrella term used for lending, trading and other financial activities carried out on a blockchain, without the need for traditional intermediaries.<\/p>\n

Binance noted that only ~0.8% of the bitcoin supply is currently being used in DeFi, and this presents a large “untapped opportunity.” In fact, last year, Julian Love, a deal analyst at Franklin Templeton Digital Assets, said the opportunity could be as much as $1 trillion<\/a>.<\/p>\n

Binance Research report said that Bitcoin needs layer 2s as the network lacks “native programmability,” unlike smart contract-based layer 1s. A layer 1 network is the base layer or the underlying infrastructure of a blockchain. Layer 2<\/a> refers to a set of off-chain systems or separate blockchains built on top of layer 1s.<\/p>\n

While there has been some progress on the development of Bitcoin layer-2 networks, these platforms need greater adoption and liquidity incentives to be able to scale up effectively, Binance Research said.<\/p>\n

The network’s security model is faced with “long-term sustainability challenges” as block rewards will continue to halve, the report said, thereby reducing miner incentives.<\/p>\n

The long-term viability of Bitcoin DeFi is dependent on execution, the further development of layer-2s, and the “ability to align with bitcoin’s unique value proposition,” the report added.<\/p>\n

Read more: Ethereum L2 Starknet Seeks ‘Bitcoin’s DeFi Take-Off Moment’ With BTC Wallet Xverse<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Bitcoin’s (BTC) role in decentralized finance (DeFi) is growing as the world’s largest cryptocurrency evolves from more than just a store of value, Binance Research said in a report Thursday. The Bitcoin network is “evolving into a broader decentralized finance ecosystem with the emergence of Bitcoin DeFi,” analyst Moulik Nagesh wrote. This is a sector […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-17656","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/17656","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17656"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/17656\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17656"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17656"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17656"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}