DeFi on the Bitcoin Network is gaining momentum despite BTC dip in dominance
- DeFi on Bitcoin is gaining momentum despite extreme market conditions that caused Bitcoin’s market dominance to wane.
- The growth of DeFi on Bitcoin has made the network much more competitive.
- With alternatives from Rootstock and Stacks to DeFiChain and Portal, some believe that there is a bright future for DeFi on the Bitcoin Network.
Decentralized finance (DeFi) on the Bitcoin network is gaining momentum despite extreme market conditions that caused Bitcoin’s market dominance to decline, sources say.
According to the source, the growth of DeFi on Bitcoin has made the network much more competitive. The network has seen Layer-2 and Layer-3 DeFi projects, such as Portal and DeFiChain, gather traction. This is despite Bitcoins (BTCs) falling in market dominance below 50% for several months.
In particular, DeFi is a technology based on secure distributed ledgers similar to those used by cryptocurrencies, and utilizes the blockchain to give users access to financial tools without relying on intermediaries.
Portal is a self-powered Layer 2 wallet and DEX on the Bitcoin network. As a DeFi building at the top of the Bitcoin blockchain, it promises to offer asset issuance, swaps and bets, among other things. Furthermore, it ensures complete anonymity in open, transparent markets.
On the other hand, DeFiChain is a hard fork of the Bitcoin network that gives users access to DeFi services along with Bitcoin security and origin. This allows more advanced DeFi applications through custom transactions.
In addition, DeFiChain offers decentralized assets (dAssets) on Bitcoin, including dTSLA, which can be used by any user on the DeFiChain blockchain. The asset gives holders price exposure of actual assets such as shares without leaving the DeFi space.
Compared to networks like Ethereum, Cardano and Solana, Bitcoin is considered by some to be fairly new when it comes to DeFi. Since Bitcoin’s core network does not support smart contracts, it is pushing the Rootstock (RSK) and Stacks networks to provide such functionality. Rootstock, in particular, is a Bitcoin side chain that acts as a smart contract network for instant payments and higher scalability of dapps.
With alternatives from Rootstock and Stacks to DeFiChain and Portal, some believe that there is a bright future for DeFi on the Bitcoin Network, enabling long-term BTC holders to take advantage of passive revenue streams.
