Since its 2009 launch, Bitcoin has been a hedge against inflation, with a market valuation reaching $1.4 trillion in March 2024. However, Bitcoin’s limited scalability and lack of smart contracts have hindered its adoption in decentralized finance (defi).
Historical milestones like the Segregated Witness (SegWit) update in 2017 and the Taproot upgrade in 2021 have aimed to improve Bitcoin’s functionality. Notably, the Ordinals protocol launched in 2023 allowed NFT-like inscriptions, potentially creating a $4.5 billion market by 2025.
Bitcoin defi is unique due to its vast underutilized liquidity reserves. For instance, Ethereum’s defi apps have a total value locked (TVL) of $76 billion, whereas Bitcoin defi holds only $320 million, presenting a $238 billion market opportunity.
The ongoing advancements suggest that Bitcoin defi could significantly expand, making decentralized financial services globally accessible.
