Decentralized finance (DeFi) is facing challenges, particularly on Ethereum, where liquidity has been fragmented due to layer-2 (L2) solutions. This has led to inefficiencies, and many in the community have turned to Solana, only to find a memecoin-driven environment marked by speculation and fraud. Instead of innovative growth, Solana’s recent gains stem from speculative trades rather than sustainable financial applications. In contrast, Bitcoin is emerging as the true backbone of DeFi, demonstrating significant growth with a total value locked (TVL) soaring from $300 million to $5.4 billion in just over a year. Bitcoin-based DeFi is introducing pioneering financial models, such as dual staking and utilizing Bitcoin’s hashrate as collateral. The shift towards Bitcoin signifies a return to Satoshi’s vision of a decentralized financial system, with efficient and sustainable growth, backed by robust institutional liquidity. Thus, as Ethereum and Solana struggle, Bitcoin is poised to shape the future of DeFi favorably, aligning incentives with long-term value creation.

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