Bitcoin’s (BTC) role in decentralized finance (DeFi) is growing as the world’s largest cryptocurrency evolves from more than just a store of value, Binance Research said in a report Thursday.
The Bitcoin network is “evolving into a broader decentralized finance ecosystem with the emergence of Bitcoin DeFi,” analyst Moulik Nagesh wrote.
This is a sector that “unlocks bitcoin’s capital efficiency” with the use of financial applications focused on lending, staking, stablecoins and decentralized exchanges (DEX’s), the report said.
DeFi is an umbrella term used for lending, trading and other financial activities carried out on a blockchain, without the need for traditional intermediaries.
Binance noted that only ~0.8% of the bitcoin supply is currently being used in DeFi, and this presents a large “untapped opportunity.” In fact, last year, Julian Love, a deal analyst at Franklin Templeton Digital Assets, said the opportunity could be as…
