Binance Research Report on Bitcoin (BTC)

Binance Research, the research arm of the world’s largest cryptocurrency exchange Binance, has published a new report on Bitcoin (BTC).

The report, written by Binance Research analyst Moulik Nagesh, stated that Bitcoin (BTC) is no longer just a store of value, and its role in the decentralized finance (DeFi) field has increased.

The analyst noted that the Bitcoin network is “evolving into a broader decentralized finance ecosystem with the emergence of Bitcoin DeFi.”

According to the analyst, the DeFi sector could enable Bitcoin HODLers to make more money on their investments. The use of Bitcoin in DeFi applications presents a huge and untapped opportunity.

With DeFi applications, BTC holders have increasing options to use Bitcoin, including collateral for lending and earning yield.

The Binance report highlighted that only 0.8% of the Bitcoin supply is currently utilized in DeFi, which is relatively low, indicating a vast potential for growth.

> “Once primarily a store of value, Bitcoin is evolving into a broader decentralized financial (DeFi) ecosystem with the emergence of Bitcoin DeFi (BTCFi).”
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> Bitcoin DeFi aims to unlock the capital efficiency of Bitcoin through financial applications such as lending, staking, stablecoins, and decentralized exchanges (DEXs).
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> “With only ~0.79% of BTC currently being used in DeFi, BTCFi could present a huge untapped opportunity. Even a single-digit penetration rate of Bitcoin’s idle supply could lead to billions of inflows, creating new avenues for financialization.”

This is not investment advice.