As the Dubai token2049 conference concludes, one of the most important collection restaurants that the story about Bitcoin (BTC) is rapidly increasing than its traditional role as a value shop to a potential Defi assets that competes with Ethereum and Solana.
Prominent industrial players such as Franklin Templeton regard this development as a positive step, convinced that it will improve the usefulness of Bitcoin without diluting its core request as a storage of value such as purists or maximalists.
“I don’t think the focus on Bitcoin Defi will dilute or more complicated,” Kevin Farreelly, who will manage the director of Blockchain Venture Capital at Franklin Templeton and VP of Digital Activa, explained during his keynote speech this week. “Instead, it expands Bitcoin’s utility for a specific type of investor- one with sufficient technical refinement to optimize for yield, security or adapted portfolio festival.”
“These users do not replace the ‘Store of Value’ thesis; they are building on it,” added Ferally. “It is not a narrative dilution, it is infrastructure evolution.”
Franklin Templeton is an investor in Bitlayer, a BitVM that serves as Bitcoin’s computational layer while retaining the safety of the Manet. It offers functions such as faster transaction processing, lower costs and new functionalities such as smart contracts or advanced defi-integrations, areas that Bitcoin just do not yet nature support.
Franklin Templeton’s Bitcoin ETF (EZBC) has registered a net entry of $ 260 million since the debut on 11 January last year. From 1 May, the 5,213 BTC fund, more than $ 500 million in managed capacity at the current price of Bitcoin, had just above $ 97,000.
Turn further out than the store of the store of value
The original vision of Satoshi Nakamoto for the Bitcoin -Blockchain was powered by creating a decentralized financial system that promotes financial sovereignty and privacy, eliminating the need for intermediary intermediaries. More than ten years since its foundation, the native cryptocurrency of the blockchain, bitcoin, has quickly collected a reputation as a digital gold – a reliable value storage – and this story has served well.
The market capitalization of BBITCOIN is today larger than $ 1.9 trillion, accounting for nearly 60% of the total market value for digital assets of $ 3.12 trillion, per cointhesk data. It is the most liquid cryptocurrency, on average several billion dollars in daily trade volumes worldwide, and various listed companies have taken over as reserve assets.
In addition, various regulated alternative investment vehicles that have been linked to BTC have emerged over the years, so that traditional market participants can be exposed to the cryptocurrency.
According to Data Source, for example, the 11 spot ETFs that are listed in the US have collected almost $ 40 billion in investor money since their debut in January last year. In the meantime, Ether ETFs have seen a net inflow of slightly less than $ 3 billion.
The strong institutional recording for BTC is large -scale attributed to its simple, compelling story such as digital gold -an active that is easy to understand in relation to complex platforms such as Ethereum or Solana, which a wider Scala of decentralized financial (Defi) supports and their native toppers.
“In the core it is seen as a digital value storage,” Farreelly told Coindesk. “In contrast to more complex crypto projects, Bitcoin does not require a deep technical explanation – it has a clear, targeted goal. That clarity can be part of what makes it easier to understand, to model it easier, and with the ETF, easier to assign.” “In a landscape full of complexity and speculative stories, a kind of signal offers – and that is more and more
As a result, many purists oppose the idea of introducing functions that are comparable to Defi directly on the Bitcoin -Blockchain, for fear that it could dilute Bitcoin’s core application.
The buzz around Bitcoin Defi at the Bitlayer event and the most important token2049 conference was tangible, which emphasized the growing demand among BTC holders for extra yield options.
“Bitcoin Defi with confidence minimized bridge, sustainable yield products for Onchain Bitcoin holders are very important for Bitcoin assistants and the network managers,” Charlie Yechuan Hu, co-founder of Bitlayer, told Coindesk.
“With Bitlayer we build important infrastructures that the Bitcoin Defi can authorize with our BitVM technologies,” hu added. “Many interesting Bitcoin Defi -USE -Cases can make Bitcoin activa more valuable, give users more reason to keep and use in the future”
This BTC Defi trend can also benefit miners, who are rewarded for mining blocks. Although the reward per block is halved every four years, increased activity on the chain that is driven by Defi applications can help compensate for this reduction by higher transaction costs to support the security and sustainability of the network.
“It is important that Bitcoin Defi also introduces new transaction costs-a critical component for the sustainability and security of the network in the long term if block senses continue to fall,” Farrelly said.
Hu expressed a similar opinion and said that the rising network hashrate means that miners need more activities – such as Bitcoin Defi – to remain profitable.
“We should build a good bitcoin rollup with security verification capacity that can contribute to Bitcoin,” HU noted.
