Unlocking the potential of dormant Bitcoin in DeFi
Bitcoin serves as a primary asset within the cryptocurrency landscape, yet a significant portion of its supply remains dormant and underutilized. As of early 2025, 62% of Bitcoin has not moved for over a year, often held in wallets for long-term strategies or due to negligence. This untapped Bitcoin could be leveraged within decentralized finance (DeFi) ecosystems, enhancing market liquidity without destabilizing prices. If reintegrated into DeFi rather than dumped on the market, it could help Bitcoin transition from merely being a store of value to an active, productive asset. Currently, Bitcoin's total value locked in DeFi stands at over $5 billion, merely 6% of the total across all blockchains, indicating vast potential for growth. Innovative mechanisms like restaking offer Bitcoin holders a way to earn yield while contributing to network security, appealing to investors seeking minimal risk. Overall, activating dormant Bitcoin can unlock significant liquidity and stability in the DeFi sector, benefiting both individual investors and the wider ecosystem.
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