Bitcoin Sidechains will boost the growth of BTCFI

Opinion of: Brendon Sedo, Core Da Initial Collaborator

bitcoin is overcoming the “digital gold” narrative. The main driver of this change is the bitcoin Defi (BTCFI) increase, which sees beyond the mere cases of use of the value store.

In 2024, bitcoin (btc) became an active performance generator natively and the centerpiece of ethereum -style decentralized finance ecosystems. 2025 is when that ignition can grow its flame in innovative bitcoin lateral technologies.

Most of the past attempts to take advantage of bitcoin's value as a productive asset required significant changes in their base layer. That is a great reason why they failed. bitcoin layer 1 is not designed for many changes, leaving most bitcoinists simply Hodl and not doing much more. The result is that bitcoin remained underutilized as an network and an asset.

bitcoin Sidechains has become the perfect solution for all these problems, climbing bitcoin's usefulness without altering or being limited by the base layer. Naturally, these protocols will be the most powerful catalyst for the growth of BTCFI, especially with btc exceeding $ 100,000, constituting more than 60% of the total participation in the cryptography market and entering a new regulatory panorama with the first regime of the United States government “Pro-crypto“.

bitcoin Escalar, a productive asset

<a target="_blank" data-ct-non-breakable="null" href="https://www.grayscale.com/research/reports/bitcoin-renaissance-the-evolution-of-the-worlds-first-public-blockchain” rel=”null” target=”null” text=”null” title=”null”>By Hal Finney, “bitcoin itself cannot climb to have all financial transactions (…) included in the block chain.” That is why there is a need for a secondary level of payment 'in your opinion.

For a long time, Blockchain space ignored Finney's action and prioritized the innovation that bitcoin isolated. However, innovations previously limited to chains such as ethereum are now crossing the world of bitcoin. Sidechanes, Rollups and other scale solutions offer more options for headlines that want ethereum style utility while remaining aligned with bitcoin. This prepared the land for BTCFI, where holders can access a range of income -generating solutions such as bets, loans and derivatives.

However, the industry is still in the first entries of this revolution in bitcoin. As of November 2024, 0.8% of its circulating supply is used for defi use cases,<a target="_blank" data-ct-non-breakable="null" href="https://www.galaxy.com/insights/research/bitcoin-layer-2-modular-future/” rel=”null” target=”null” text=”null” title=”null”> according to Galaxy Digital. Of market capitalization of approximately $ 2 billion of bitcoin, less than $ 7 billion <a target="_blank" data-ct-non-breakable="null" href="https://defillama.com/chain/bitcoin” rel=”null” target=”null” text=”null” title=”null”>understood BTCF TVL.

While this may seem without being at the origin, it highlights the remaining mass opportunity. bitcoin L2 infrastructure climbed 7x from 2021 to November 2024.

Recent: bitcoin Defi TVL rises 2,000% in the middle of a 2024 bumper for the price of btc, adoption

More importantly, he explained a considerable part of the new liquidity that flows to btc, in addition to institutional products such as stock -listed funds (ETF).

Even if bitcoin's supply on BTCFI platforms and side layers grows by 0.25% per year, the sector will have a total directable market from $ 44 billion to $ 47 billion by 2030, according to Galaxy Digital. However, as Bitcoiners know, this is a conservative estimate and accelerate accelerating the price of btc or even more bitcoin Defi adoption.

The VCs, meanwhile, have begun to recognize the potential of bitcoin Sidechains, investing more than $ 447 million already, according to Galaxy Digital. Of this, around $ 174 million were invested in the third quarter of 2024, preparing the scenario for a more explosive growth in 2025. More funds for initial stage projects will ensure more successful releases, innovations, options for users and general value.

As bitcoin's native solutions provide access to productive use cases for bitcoin, users will no longer need to trust trusted intermediaries and Bitcoins intelligent contract platforms. The necessary sacrifices will no longer be required to expand the utility of bitcoin in the past. That can unlock a substantial value for btc holders of principles and even the bitcoin network itself.

bitcoin yields for bitcoin

Until now, joining the virtual machine chains of ethereum (EVM) of Turing-Complete has been a way to facilitate yields and other cases of financial use in bitcoin. For example, the bitcoin wrapped market (WBTC) in ethereum is more than $ 10 billion. While solutions such as WBTC have been adequate for some, many bitcoin headlines prefer not to trust custodians with their capital or trust chains such as ethereum, which do not align with the principles of consensus of bitcoin or support the network.

BTCFI, defined by the infrastructure aligned and fed by bitcoin bitcoin, is a solution from which both WBTC users and bitcoin purists can benefit. Users who are already accustomed to the sophistication of ethereum's intelligent contract can continue to enjoy that EVM experience and at the same time they approach bitcoin's roots. bitcoin principles can obtain more options for the usefulness of their btc if the side chain is aligned with the base network.

bitcoin holders also get access to btc derived from ethereum native solutions such as WBTC. btc derivatives of performance in lateral technologies aligned by bitcoin are an improvement of 100x, which offer self -control and performance sources previously not available for bitcoin holders.

In general, BTCFI can be much more significant. Not only compared to the place where it is now, but also with Vis-Vis EVM and defi based on SVM. bitcoin Sidechains is already promoting this turn, and will continue to do so for 2025. All that is needed is the correct approach and consistency with respect to the development and product pipes.

For BTCFI, the route is clear: delivery use cases with product market adjustment to bitcoin holders on platforms with bitcoins. This will lay the foundations to generate even more value for the bitcoin community as a whole. And ultimately, there will be a positive steering wheel of the adoption of bitcoin.

The institutional side led the headlines in 2024. Now, it is time for the Native Ochain camp to show its strength and delivery.

Opinion of: Brendon Sedo, Core dao initial collaborator.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The points of view, the thoughts and opinions expressed here are alone of the author and do not necessarily reflect or represent the opinions and opinions of Cointelegraph.