Bitcoin DeFi TVL Predicted to Surpass Ethereum in 2 Years

Bittime - Bitcoin DeFi TVL or Total Value Locked is expected to surpass Ethereum in the next 2 years. This was conveyed by Branden Sedo, developer of the Bitcoin Core DAO sidechain, at the Korea Blockchain Week event.

DeFi Bitcoin

SAs Bitcoin's value grows and products like ETFs attract funding from large institutions, more capital will flow into Bitcoin sidechains and DeFi applications. 

Currently, Core DAO has become the largest Bitcoin sidechain, with a TVL of $314.4 million, which accounts for 26.4% of the overall TVL across all Bitcoin sidechains.

KBitcoin's market capitalization, which currently exceeds 1 trillion dollars, has the potential to move into DeFi applications. If technological solutions such as trustless bridges and roll-ups continue to develop, the liquidity of the Bitcoin ecosystem will become greater so that it can compete with Ethereum in terms of TVL.

Read Also: Short Term Bitcoin Price Prediction, Drop To $50,000?

Bitcoin DeFi Development

As the popularity and development of new technological solutions in the Bitcoin network increases, Bitcoin-based DeFi is starting to attract attention. 

One significant development is the approval of a spot Bitcoin ETF which has sparked a surge in development activity on sidechains such as Core, Bitlayer, and Stacks. 

This is considered an important step to increase Bitcoin's scalability and open up more opportunities for users to utilize assets within the Bitcoin ecosystem.

TVL DeFi Bitcoin

Even though it has great potential, Sedo admits that the biggest challenge in increasing Bitcoin's TVL is changing the mindset of Bitcoin holders who have tended to choose to store Bitcoin in cold wallets rather than utilize it in the DeFi ecosystem. 

Many Bitcoin owners are skeptical of using Bitcoin in interest-bearing schemes due to bad experiences with platforms such as BlockFi and Celsius which collapsed in 2022.

The collapse of these platforms caused many Bitcoin users to lose assets, giving rise to distrust in yield-bearing financial products.  

Non-Kustodial Bitcoin DeFi 

However, Sedo sees a change in attitudes among Bitcoin holders, especially when it comes to non-custodial DeFi applications that do not require trust in third parties.

DeFi Solutions non-custodial is when users can utilize Bitcoin without having to give up control of the private keys. In this case, the Core sidechain has an important role with its completely non-custodial staking model. Core users can time-lock Bitcoin without worrying about losing assets because they retain full control of their private keys.

Additionally, Core has a bridge supported by LayerZero, one of the largest bridge protocols that has never experienced a cyberattack. That way, users can take advantage of the Core network without worrying about high security risks.

Read Also: Bitcoin Market Has Turned From Bearish To Neutral

How to Buy Crypto with Bittime

You can buy and sell crypto assets in an easy and safe way through Bittime. over is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

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