A report from Binance highlights the potential of decentralized finance (DeFi) in leveraging Bitcoin for enhanced liquidity and improved capital efficiency. It notes that currently, merely 0.79% of Bitcoin is utilized within DeFi applications. As Bitcoin is predominantly viewed as 'digital gold', many investors tend to hold it long-term rather than actively deploy it for earning potential. The report argues that with DeFi, Bitcoin holders could benefit by using their assets as collateral for loans, engaging in yield farming, or other structured financial products. It suggests that this shift could make Bitcoin more productive, paralleling its application in traditional financial markets. Despite past security concerns and scams in the DeFi space, Binance emphasizes the indispensable growth of protocols aligned with Bitcoin’s security features, potentially leading to a compelling sector worth observing.

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