A recent Binance report highlights the untapped potential of integrating Bitcoin into decentralized finance (DeFi) applications. Currently, only 0.79% of Bitcoin is actively utilized in DeFi, presenting an opportunity to unlock billions in dormant BTC liquidity. The report suggests that Bitcoin, primarily viewed as 'digital gold,' could become more productive as DeFi protocols evolve. By leveraging Bitcoin in these applications, holders can use their assets as collateral for loans or earn yields through lending. Despite Bitcoin's architecture not being designed for complex financial applications, developments in DeFi compatible with Bitcoin are underway, particularly with increasing support from Layer-2 networks. The report emphasizes that for DeFi to resonate with BTC holders, it must align with their preferences for security, self-custody, and long-term value. If successful, the integration of DeFi into Bitcoin could lead to robust new opportunities for investors in the cryptocurrency space.

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