Bitcoin sidechains will drive BTCfi growth
From Cointelegraph
March 22, 2025 11:00 am:
Bitcoin is evolving beyond its “digital gold” status, thanks to the rise of Bitcoin DeFi (BTCfi) in 2024. With BTC becoming a yield-generating asset and entering Ethereum-style decentralized finance ecosystems, Bitcoin sidechains are key in scaling its utility without changing the base layer. This growth is supported by BTC surpassing $100,000 and capturing over 60% of the total crypto market share.
To address Bitcoin’s scalability limitations, secondary payment solutions like sidechains and rollups are offering more options for holders seeking Ethereum-style utility while remaining aligned with Bitcoin. Despite only 0.8% of Bitcoin’s circulating supply being used for DeFi as of November 2024, Bitcoin L2 infrastructure has scaled significantly, with BTCfi TVL making up a small portion of Bitcoin’s market cap.
Investors are recognizing the potential of Bitcoin sidechains, with over $447 million already invested and more funding expected in 2025. As Bitcoin-native solutions offer productive use cases without the need for intermediaries, users can unlock substantial value for themselves and the Bitcoin network. BTCfi presents a significant opportunity for Bitcoin holders and the broader crypto community.
BTCfi aims to provide yield opportunities and financial use cases on Bitcoin through Bitcoin-aligned infrastructure, catering to both WBTC users and Bitcoin purists. By offering self-custody and improved yield sources, BTCfi can provide a 100x improvement over Ethereum-native solutions like WBTC. With the right approach and consistent development, BTCfi has the potential to drive significant growth in 2025 and beyond, leading to increased adoption and value for the Bitcoin community. 1. The stock market soared today with the Dow Jones Industrial Average reaching a record high of 30,000 points. This milestone comes amid positive news of potential COVID-19 vaccines and economic recovery, boosting investor confidence.
2. A new study published in the New England Journal of Medicine revealed that the Pfizer-BioNTech COVID-19 vaccine is 95% effective in preventing the virus. The vaccine also showed no serious side effects, providing hope for combating the pandemic.
3. President-elect Joe Biden announced key members of his economic team, including Janet Yellen as Treasury Secretary. Yellen, a former Federal Reserve Chair, will be the first woman to hold this position, signaling a focus on economic recovery and stability in the incoming administration.
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1. Bitcoin reaches new all-time high of $60,000, driven by increased institutional interest and adoption. The cryptocurrency market cap surpasses $1 trillion for the first time, as investors flock to digital assets for potential high returns.
2. Ethereum price surges to $2,000, as decentralized finance (DeFi) projects gain traction. The network also sees a significant increase in daily transactions, signaling growing interest in Ethereum’s smart contract capabilities.
3. NFTs (non-fungible tokens) continue to make waves in the art world, with a digital artwork selling for $69 million at Christie’s auction house. The sale marks a milestone for NFTs as a new form of digital collectibles and investments.: Bitcoin sidechains will drive BTCfi growth