In our latest Learn 101 livestream session, we gathered an esteemed panel of crypto experts to share insights on whether BTC will soar to $100K by 2024.

The extreme volatility of Bitcoin and periods of strong growth throughout its history have created substantial wealth for many investors. Bitcoin breached $70,000 earlier in 2024, and many investors are eagerly awaiting price movement to $100,000.

, we ask, “Will Bitcoin Soar to $100K by 2024?”

, provides a recap of our Learn 101 livestreams, offering you comprehensive expertise and insights from leading figures in the crypto industry in case you miss the livestream.

Joining the livestream on Sep 11, 2024 were four distinguished guests:

Under the moderation of Sabrina Chua, Crypto Evangelist and SEO Editor at Bybit, this episode explores if Bitcoin’s price will reach $100K by 2024.

Bitcoin's Journey — Looking Back to Look Forward

At the start of the livestream, Michael Ionita created an automated trading order to demonstrate how easy it is. It remained running in the background until the end of the stream, when our guests reviewed the order.

Throughout the years, Bitcoin’s price has been influenced by the Jackson Hole Economic Symposium, government policy, ETF applications and other factors. Henrique Centieiro stated that short-term macroeconomics are impacted by the Federal Reserve. The economy is currently relatively shaky, and he anticipates more money will be printed. When this last took place, the stock market shot up, and Bitcoin’s price increased substantially. Centieiro attributes this to the level of increased money in circulation.

Referring to a chart that shows a correlation between lowered U.S. interest rates and Bitcoin’s price, Ionita demonstrated that increased money supply has boosted Bitcoin’s prices.

Jerry Li is bullish over the next six months. He reminded us that inflation weakens both the U.S. dollar and purchasing power, and as interest rates drop, he sees a correction in the crypto market that will positively affect Bitcoin’s price.

Centieiro stated that some people will take profits during the rate adjustment. He believes that the next month may be bearish, but there will then be a bull rush.

Ionita said that the market has been impacted by Russia’s new Bitcoin policy, asserting that this is bringing more funds into Bitcoin. However, many people in Russia are holding Bitcoin on a short-term basis because they’re making purchases with it. This makes Russia’s policy impact both bullish and bearish: Ionita maintains that other countries may act on this by prohibiting or limiting Bitcoin because of world events.

Meanwhile, Centieiro stated that the amount of money being kept on exchanges is at an all-time low, which means people are holding for a longer period of time. Bitcoin miners continue to invest in mining equipment. In addition, Michael Saylor has stated that Bitcoin’s price will reach 

Li drew attention to the fact that recently, hash power has increased dramatically, which is attributable to the entrance of more people and countries into the crypto market.

Ionita described the Bitcoin Spot ETF rally of 100%, attributing it to massive public interest. He believes BTC’s price is being heavily restricted because of this huge interest, and expects its price to rise by the end of October, based on the interest in Bitcoin Spot ETFs.

Centieiro said that there’s a lag as money managers decide whether to invest or not. Adding Bitcoin to a fund, even in small amounts, increases diversity and lower risks. He believes this is a win-win situation for money managers.

Li reminded us that Bitcoin will definitely reach $100,000 at some point, but nobody knows when. The upcoming U.S. election may drive its price up, but it could also bring greater volatility. Other catalysts may drive the price up as well.

Ionita referred to his screen again, saying that it’s hard to predict a price for something with multiple variables. However, he referred to the Fibonacci cycle for the current market, which reveals a Bitcoin price prediction between $200,000 to $300,000, adding that it’s impossible to predict the time frame. The average cycle time, however, is 1,069 days, which would extrapolate to the end of October 2025, but this time frame is fuzzy. He believes $200,000 is realistic for the cycle.

Centieiro described some price movement obstacles that have prevented Bitcoin’s price increase or slowed the time frame for BTC hitting $100,000 — the uncertainty of the U.S. election, for one. He also referred to a chart showing a lower flow in market-based mining activity. This indicates a type of magnet for the price. Centieiro also introduced a power log that shows BItcoin’s price should currently be around $90,000. He believes the current price is a pressure cooker, and the price will therefore greatly increase.

Zitane said the main risks that could stymie BTC price growth are regulatory uncertainty, economic instability and military conflicts, among others, directly affecting BTC’s price.

Ionita added that investors should get out of any risky asset in a downturn in order to prevent loss. He stressed the importance of understanding that both BTC and the U.S. dollar are preferred as investments in different situations, and showed a graph indicating that dollar-cost averaging (DCA) isn’t a wise approach for risky assets.

Li, however, stated that he uses DCA. He believes it’s a healthy strategy over a long period of time, due to his confidence that Bitcoin’s price will eventually go back up after a dip.

Centieiro agreed with Ionita that it’s not advisable to use DCA for an asset that’s going to zero. However, he doesn’t believe that Bitcoin will ever go to zero. Centieiro believes in DCA as a solid, long-term strategy to smooth out BTC market volatility.

Zitane has a simple strategy: he only uses DCA. He makes a purchase, and then buys again if the price goes down. He pays attention to the news, keeps buying when the price goes down and continues to reduce his average price.

Ionita reminded us that you can make more money with manual trading if you know what you’re doing. Most people aren’t professional traders, though, and can get wrecked in a bear market if they don’t stay on top of things. He recommends that these traders use an automated algorithm.

Smart Trading — Entering and Exiting with Confidence

Centieiro explained how he enters a trade: he buys BTC and holds it for at least a few years, looking for a relatively cheaper price as compared to previous prices. This is determined by a look at the 200-day moving average. He also looks at the Crypto Fear & Greed Index. Centieiro explained that investors must decide how long they plan to hold BTC 

 buying it. He invests a portion of his investment amount at one time, and spreads the rest of his investment out over several weeks.

Ionita, however, holds his BTC over several months. He looks at Fibonacci and other charts to invest funds in BTC and several other assets, based on risk. He maintains a specific allocation, with more allocation to the least risky assets.

This session of the Learn 101 livestream highlighted “Will Bitcoin Soar to $100K by 2024?”

As part of the livestream, Bybit is holding an 

 that offers you a chance to participate in our pop quiz and win a share of 300 USDT in airdrops. The event period is through September 18, 2024, 11:59PM UTC.

Stay tuned for more discussions on the dynamic world of cryptocurrencies!

Intermediate

will bitcoin soar to $100K by 2024 featured image

EN_2408-T34286_Learn Livestream_1600x900_B.png

Learn Live ICYMI: Will Bitcoin Soar to $100K by 2024?

Self Chain (SLF) is a Layer 1 network that provides a cross-chain keyless wallet solution, along with modular intent-based transaction execution capabilities.

 can be tedious and frustrating, especially for beginners. At the same time, careful private key management is crucial if the user wants to avoid security breaches or the loss of access to their wallet. 

Wouldn't it be great if you could transact securely on blockchains using your social media logins while also enjoying the cryptographic protection features provided by crypto wallets? And without the need for private key or 

This is exactly what Self Chain (SLF), an innovative 

 blockchain project, offers to the crypto user community.

multi-party computation — threshold signature scheme

 (MPC-TSS), Self Chain offers keyless wallet services that let you transact across multiple chains and applications. Additionally, its solution comes with a large language model (LLM) intent-based chat assistant to find you the best deals and transaction options in the cryptocurrency world.

 (SLF) is a decentralized platform that describes itself as the first modular intent-centric access Layer 1 blockchain. 

It provides two key services: an AI-driven chat assistant that helps users carry out intent-based transactions, and a keyless wallet solution that facilitates multichain logins and transactions without the need for private key or seed phrase management. Self Chain’s Layer 1 network is based on the popular Cosmos SDK blockchain development framework. 

 (ATOM) ecosystem, Self Chain uses the delegated proof of stake (DPoS) block processing method, with validator nodes securing the network.

The project was initially called Frontier (FRONT). It began its network operations with the launch of an incentivized testnet in April 2021. In mid-2024, Frontier was rebranded to Self Chain and launched its mainnet.

Self Chain's AI chat assistant accepts voice and textual inputs from the user, and searches multiple blockchain platforms and 

 (DApps) to find the best possible deals. This service can be used in various areas, including 

 (DeFi). For instance, crypto gamers can use Self Chain’s intent-based search for the best deals on gaming 

 assets, while DeFi traders can instruct the assistant to find the best rates for specific coin swaps.

The platform's keyless wallet infrastructure service allows users to securely use email- and social media–based 

 logins to blockchain apps and platforms. This is enabled by splitting the wallet's seed phase into three parts, each stored separately — one encrypted on the user's device, the second encrypted and stored on the Self Chain network in a decentralized manner and the third reserved for wallet recovery purposes..

The platform's chat assistant is based on an LLM model that transforms user inputs into signed automated intent instructions. These instructions are passed to Intent Searchers, entities that scout the blockchain ecosystem for the best deals and most efficient paths for the intended transaction. Once the optimal source is found, Intent Searchers pass the request to intent solvers, whose job is to execute the transaction.

Blockchain DApps that aspire to become Searchers and solvers within the Self Chain ecosystem can use the Intent DSL SDK, a development framework offered by the platform. Using the SDK, DApps can integrate into the platform's architecture and translate user intent commands into executable searches and transactions.

The Self Chain keyless wallet service is powered by MPC-TSS technology, which permits splitting the user's private key, seed phrase or other secret identifier into multiple fractions, each stored independently to avoid a single point of failure. As a security technology, MPC-TSS predates blockchain, and can be applied in a chain-agnostic manner.

In Self Chain's implementation of MPC-TSS, there are three seed phrase fractions, with the two main ones — the Personal Share and the Remote Share — held on the user's device and the blockchain, respectively. When an operation is carried out, the Personal Share is matched against the Remote Share to facilitate the transaction. A network of MPC nodes encrypts the Remote Share in a distributed fashion to further enhance the security of operations.

The third fraction — the Recovery Share — is used solely to restore access to the user's device or add a new device.

Thanks to this chain-agnostic keyless system, users can retain the self-custody of their wallets, enjoy the security of the blockchain's cryptographic protection and use keyless logins on a myriad of platforms.

Self Chain lets users enjoy multichain account abstraction (AA), whereby wallets can carry out complex operations without you needing to worry about the specifics of underlying technology. For example, Self Chain–based wallets can execute bundled transactions, carry out cross-chain operations and optimize gas fees, all without user intervention.

What Is the Self Chain Crypto Token (SLF)?

During the project's mid-2024 rebranding from Frontier to Self Chain, its native cryptocurrency was migrated from the FRONT token on the 

 (BNB) to the SLF coin, native to the Self Chain's Layer 1 network. The migration was announced in late August 2024, and as of the time of this writing (Sep 16, 2024), FRONT holders can still migrate their tokens, with no specific conversion deadline provided by the project team.

SLF is used for a wide variety of functions on the Self Chain platform, including the following:

SLF has a total and maximum supply of 360 million. The coin's supply allocation shares are per the chart below:

The SLF coin is available on Bybit as a Perpetual contract with USDT (

). Under this contract, you can trade SLF with up to 12.5x leverage.

Self Chain's innovative system simplifies keyless multichain web3 access, while the versatile LLM assistant helps efficiently interpret user intent to conduct diverse transactions across networks. This is a functional set that few other projects in the industry can provide. In particular, the keyless wallet solution is something that truly sets Self Chain apart. 

While there are a few crypto projects that utilize an intent-focused approach and AI-based chat assistants, Self Chain’s keyless functionality is a rare feature that will undoubtedly attract interest from a variety of users. Navigating myriad DApps and networks and transacting on them without the need for meticulous private key management has just gotten a lot easier — all thanks to Self Chain and its implementation of MPC-TSS.

Advanced

self chain (SLF).png

Self Chain (SLF): The Future of Secure Private Key Recovery

Stacks is integrating with the Aptos Network to bring Bitcoin's utility to decentralized applications through sBTC, a 1:1 Bitcoin-backed token.

The SPX index was up by 0.03%, with key sectors underperforming, including healthcare, consumer staples, and real estate, while energy, consumer discretionary, and industrial stocks outperformed. Coindesk Indices, an index measuring broader cryptocurrency market performance, was up by 2.95%, with Bitcoin and Ether rising by 3.62% and 3.16%, respectively, in the past 24 hours.

Today's top performer is SAGA, which surged 27.3% following its announcement of a new economic model focused on sharing in project success rather than charging gas fees.

Saga (SAGA), founded in 2021, is a Layer 1 blockchain protocol that allows developers to create customized chains for their applications, providing shared security and scaling solutions. 

 focuses on sharing in the success of projects built on its platform, rather than charging gas fees. Projects can launch cheaply on Saga's chainlets, and Saga takes a small cut of token activity once bridged through its infrastructure. As projects grow and their tokens become valuable, Saga can hold, use, or sell these tokens to fund ecosystem growth and buy back $SAGA tokens. This creates a network effect where success drives further success, positioning Saga as a key platform for value generation in web3.

Check Out the Latest Prices, Charts, and Data of 

 to bring Bitcoin's utility to decentralized applications through sBTC, a 1:1 Bitcoin-backed token. This integration allows Bitcoin to be used beyond a store of value, enabling participation in DeFi, gaming, AI, and social platforms on Aptos. The integration follows the resolution of an SEC investigation into Stacks, clearing the path for further Bitcoin scaling advancements. Stacks' recent Nakamoto upgrade has improved its transaction speeds and block production, facilitating this new cross-chain capability.

Yesterday, The total flow for BTC Spot ETFs was $186.8 million, with $0 from GBTC and $186.8 million from non-GBTC sources.

 on Optimism’s OP Mainnet, with 185 million WCT tokens being airdropped to users. The airdrop registration opens on September 24, targeting users who engage with WalletConnect or contribute to open-source projects. WCT tokens will drive WalletConnect's governance and economic structure, initially non-transferable until 2025. The newly formed WalletConnect Foundation will oversee the protocol's transition to a permissionless structure. WalletConnect aims to decentralize further and has seen 240% growth in the past year.

Beginner

3.png

Stacks Integrates with Aptos, Expanding Bitcoin’s Utility to dApps and DeFi

Explore our article to find out what’s the Cipher Code for today’s Hamster Kombat’s Daily Cipher Code.

, where managing your crypto exchange meets the intellectual challenge of daily Morse code puzzles. Released each day at 7PM UTC, these puzzles do more than just test your mental agility; they offer significant rewards that can enhance your strategic influence in the game.

, challenging you to decipher a Morse code each day. Successfully solving these puzzles not only boosts your coin reserves, but also sharpens your critical thinking skills, enhancing both your gameplay and strategic planning.

Today’s Hamster Kombat Daily Cipher: Sep 18, 2024

 Daily Cipher for Sep 18, 2024, is as follows:

 —•••   ••   —•   •—   —•   —•—•   • 

Ensure each Morse code sequence is entered with precision and slight pauses between letters to confirm correct execution and secure your reward.

Gain an early advantage by trading HMSTR tokens through Bybit’s Pre-Market Trading. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

Today's Daily Cipher and the interactive gaming activities available within 

 provide ample opportunities to boost your coin balance and deepen your engagement with the game. Each puzzle you solve not only contributes to your financial growth, but also refines your analytical skills, making every gaming session both rewarding and intellectually stimulating.

Stay tuned for daily updates and expert strategies to maintain your competitive edge in the thrilling world of 

hamster kombat daily cipher code.png

A Guide to Hamster Kombat's Daily Cipher Code (Sep 18, 2024)

Bybit Learn

Bitcoin

Bitcoin's DeFi ecosystem, known as BTCFi, is made up of a variety of projects such as BitVM, Bitlayer, Bitcoin Ordinals and the Runes protocol.

2401-T16454_Skinny_Banner_for_Blog_and_Learn_Row_53_728x90.png

what_is_bitcoin_defi_2.png

what_is_bitcoin_defi_1.png

Skinny_Banner-1600x400.webp

For years after its introduction in 2009, the 

 (BTC) blockchain remained an environment used exclusively for asset transfers and storage. The rise of 

 (ETH) as an alternative to traditional financial systems in 2017–2018 seemed to ignore Bitcoin, the world's oldest blockchain, and its vast potential. Many at that time assumed that Bitcoin's relevance in the industry would decline, as 

 (DApps) elevated the status of Ethereum. However, it didn't take long for the Bitcoin community to come back with answers, some utilizing sidechains and other 

 solutions, and others leveraging the chain's own native mechanisms.

In the past few years, the ecosystem of apps and decentralized platforms that enable Bitcoin-focused DeFi — or BTCFi, as it's come to be known — has flourished. BTCFi is now a growing world, featuring efficient payment solutions, smart contract sidechains, fungible token protocols and even a technology for issuing Bitcoin-based NFTs. 

The exciting world of BTCFi still lacks the sophistication and programmability muscle of Ethereum's DeFi sector, but it's catching up fast. In this review, we’ll take a closer look at some of the critical apps and platforms that power BTCFi, a sector that leverages the potential of the world's largest crypto asset, the BTC coin. We’ll also discuss the key differences between the emerging BTCFi ecosystem and the established Ethereum DeFi universe.

Understanding Decentralized Finance (DeFi)

The launch of Ethereum in 2015 is often considered the starting point for the DeFi industry. For the first time, a popular smart contract–capable blockchain arrived on the scene, opening up opportunities for DeFi solutions such as 

 (DEXs), lending and borrowing protocols, and other crypto-based finance operations. However, it wasn't until 2017–2018 that the DeFi field really took off, with the introduction of pioneering protocols like 

These DApps and their business models were made possible thanks to Ethereum's smart contract functionality, which enabled complex logic and transaction execution capabilities on the blockchain through the 

While early DeFi protocols represented a wide variety of niches, five areas quickly emerged as the most popular and dominant within the overall DeFi ecosystem:

A few years later, another major category — 

 solutions — also became a prominent niche within the DeFi industry.

Bitcoin missed the early DeFi revolution, largely due to its absence of native smart contract capabilities. However, as early as 2018 and 2019, the first solutions aimed at enabling Bitcoin-based DeFi, or BTCFi, began to emerge. Some of these projects revolved around smart contract–capable Layer 2 sidechains linked to the Bitcoin network. Others championed the idea of 

 (e.g., wrapped Bitcoin, or WBTC) that could be transferred to Ethereum and used within this chain's leading protocols, such as AAVE, Curve Finance and Compound for collateral provision, swaps and other popular DeFi transactions.

The BTCFi field received a major boost in November 2021 with the introduction of Bitcoin's 

 upgrade, which introduced the functionality of batching multiple digital signatures for processing. These signatures are used on Bitcoin to verify transactions. Taproot’s practical advantages include significantly improved transaction processing and less bloat on the network. As a result, more complex transactions could be processed in less time and with more modest block space requirements. In turn, the ability to process more transactions in a more complex way led to a flurry of BTCFi activity and the emergence of new projects on the network.

In the past couple of years, newer BTCFi projects — such as BitVM, Bitlayer, Bitcoin Ordinals and the Runes protocol — have further advanced the sector, bringing it much closer to Ethereum's still dominant DeFi capabilities.

Compared to Ethereum's giant DeFi ecosystem, BTCFi is still a small world. However, BTCFi is catching up quickly, despite its somewhat late start. Below are some of the key points that distinguish Bitcoin DeFi from Ethereum DeFi:

Launched in July 2024 by the Lighting Labs team, who also created Lightning Network (which we'll cover shortly), 

 is a protocol built on the Taproot upgrade that enables the issuance and transfer of a wide variety of crypto assets on the Bitcoin blockchain. These assets are stored within 

 (UTXO), and can easily be transferred as part of standard Bitcoin transactions. The protocol stores the metadata off-chain to reduce the load on the Bitcoin network.

While Taproot Assets was originally built to facilitate 

 settlement on Bitcoin, users can now use it to create all kinds of assets on Bitcoin, including both fungible tokens and 

 (NFTs). These assets can easily be transferred as part of regular Bitcoin transactions, and can also be issued and transferred within Lightning Network for low-cost, highly scalable transfers, thereby running little risk of congesting the Bitcoin network.

 is used not only for Taproot Assets transfers, but also for a wide variety of Bitcoin transactions. Launched in 2018 by Lightning Labs, this Layer 2 solution lets users transact much more efficiently and cost-effectively as compared to native Bitcoin transfers. When two transacting parties use Lightning Network, the platform establishes a dedicated one-to-one channel for them for efficient communication. The parties commit to the channel by first bonding an amount of BTC on the underlying Bitcoin blockchain to open the channel. Then, the channel is opened and can be used for transacting, with all of the transactions processed 

The off-chain transaction mode allows Lightning Network to swiftly process a large amount of transfers at low cost, thus avoiding delays and high fees typically associated with the Bitcoin network. In fact, some of the most popular use cases for this solution are for micropayments and high-volume transfers.

Ethereum's DApp functionality has been supported by the blockchain's processing engine — EVM. For years, Bitcoin lacked a processing engine that would support programming logic and smart contracts. This all changed with the introduction of 

BitVM is a computational engine that’s designed to enable Turing-complete programming logic on Bitcoin. This opens up the opportunity to directly create DApps with advanced functionality and logic on the blockchain. While BitVM supports somewhat sophisticated programming logic for Bitcoin, it has one key limitation — the engine natively supports only two-party interactivity.

This limits, to a certain degree, the kind of DApps that can be used with BitVM. Any solutions that require only two-way interactions (e.g., one-to-one payment systems), can work well with the engine. However, more complex DApps, which normally require multi-party transactional ability, can't natively be accommodated by BitVM. Despite this limitation, BitVM is one of the key innovations opening up ways to create functional DApps on Bitcoin.

 (STX) is a Layer 2 solution that’s capable of hosting fully-fledged smart contract functionality and DApps on Bitcoin, as well as leveraging Bitcoin for security and settlement. This allows DApps hosted on Stacks to utilize the network's smart functionality while benefiting from the security of Bitcoin’s PoW network.

Stacks has its own block validation model, called proof of transfer (PoX). Stacks' blocks are anchored to Bitcoin, with the latter ultimately used for transaction validation. Using its anchor to Bitcoin, Stacks settles all transactions on Bitcoin via periodically transferred batches.

One area in which smart contracts have been used extensively on Ethereum is for NFTs. Due to Bitcoin’s lack of native smart functionality, its environment had been deprived of NFTs up until early 2023. That’s when developer Casey Rodarmor introduced the 

 protocol, a unique way of creating NFT-like assets on Bitcoin without using smart contracts.

 — the smallest unit of a Bitcoin — on the network can be uniquely identified from its position within each mined block. The Ordinals protocol specifies a way to inscribe pieces of data (e.g., text or image) into a uniquely identifiable satoshi, essentially opening up a route to creating Bitcoin-based distinct digital artifacts, such as NFTs.

As of mid-September 2024, the Ordinals protocol remains the primary way to create Bitcoin NFTs. The 

 of these digital artifacts on Bitcoin’s network is approximately 75 million.

 is another innovative technology introduced by Casey Rodarmor for the Bitcoin ecosystem. In the section on Taproot Assets above, we noted how that protocol leverages Bitcoin UTXOs to create tokens. The Runes protocol works similarly at the basic level and is also compatible with Lightning Network. 

Runes establishes a way to create fungible crypto assets on Bitcoin by attaching key token properties to Bitcoin UTXOs. However, there are significant differences between Taproot Assets and Runes. Unlike Taproot Assets, which stores token metadata off-chain, Runes is a purely on-chain solution. It's been lauded as a highly secure and lightweight way to handle fungible crypto assets on the Bitcoin chain.

As of mid-September 2024, there are close to 100,000 Runes tokens in existence, with the leading token, 

 (DOG), having amassed a market cap of around $257 million. The majority of popular Runes tokens are classified as meme coins.

 is a Layer 2 blockchain platform that leverages the BitVM engine described above. It represents the first widely known implementation of BitVM technology. Bitlayer acts as a processing medium that handles transactions and then settles them on the underlying Bitcoin chain. The platform, however, isn't just about BitVM — it also features a high degree of compatibility with the Ethereum ecosystem. Using its Layered Virtual Machine (LVM) technology, Bitlayer makes it easy to port Ethereum-based solutions to the Bitcoin ecosystem.

Programming code written in an EVM-compatible language like Solidity or Vyper easily compiles into a Bitlayer-compliant format, which greatly simplifies DApp porting and communicating between the Ethereum and Bitlayer environments. As such, Bitlayer is among the few platforms that enjoy both 100% EVM compatibility and the much-heralded security of Bitcoin.

Rootstock (RSK) is a Layer 2 solution that combines EVM compatibility with Bitcoin's security protection. With its mainnet launch dating back to January 2018, Rootstock is the oldest Layer 2 sidechain servicing Bitcoin. It features smart contract functionality, and is one of the key ways for developers to launch and operate Bitcoin-linked DApps.

The Rootstock blockchain's primary crypto asset, RBTC, is pegged to BTC at a rate of 1:1. Users can transfer their BTC to Rootstock, which then converts it to RBTC for use within the platform's ecosystem. At any time, users can reclaim their BTC and transfer funds back to Bitcoin. Besides smart contract functionality, what sets Rootstock apart from the native Bitcoin chain is its superior scalability and lower transaction costs. For instance, while the standard block confirmation time on Bitcoin is about 10 minutes, it's just 30 seconds on Rootstock. 

Rootstock’s shorter transaction confirmation time and full EVM compatibility make it an excellent environment for DApps to tap into the potential of the BTC ecosystem. At the same time, the platform has specifically focused its efforts on enabling DeFi use cases and attracting partner projects in the niche of decentralized trading.

Like Rootstock, Liquid Network is another longtimer among Bitcoin Layer 2 platforms. It launched its mainnet in September 2018, and has proven to be among the leading solutions to address Bitcoin's high transaction costs and poor scalability. As with Rootstock, Liquid Network is a Bitcoin sidechain that maintains a BTC-pegged asset, Liquid Bitcoin (L-BTC). Users can swap their BTC for L-BTC and then use the funds within Liquid Network's ecosystem for faster and more reliable asset transfers.

However, similarities between the two sidechains end here. Unlike Rootstock, Liquid Network has no native smart contract functionality. Its platform is designed primarily to improve the scalability and costs of asset transfers and to issue stablecoin assets. Like Lightning Network, it focuses on payments and transfers. The difference, however, is that Lightning Network is optimized for small or micro transfers, while Liquid Network is more suitable for medium and large asset transfers.

 (BADGER) is a leading DeFi platform that has championed the concept of linking the Bitcoin and Ethereum worlds. Launched on Ethereum, Badger’s key platform leverages wrapped Bitcoin assets, such as 

, across Ethereum's rich ecosystem of DeFi apps. While not a native Bitcoin solution, Badger plays a vital role in expanding the utility of BTC to additional ecosystems beyond the Bitcoin network.

BTC (or rather its wrapped variations) is used on Badger as a form of collateral for DeFi operations. Badger offers a dedicated bridging solution, the Badger Bridge, to easily transfer BTC to the platform wrapped as one of the two popular wrapped tokens — RenBTC or WBTC. These tokens can then be used in various DeFi apps to earn yield or act as collateral. Both of the wrapped Bitcoin tokens supported by Badger are quite popular, although RenBTC is a less prominent player in the field than WBTC. Currently the second-highest-capped wrapped token in the industry, WBTC enjoys vast popularity with a market cap of $8.6 billion.

Bitcoin DeFi apps offer several distinct advantages to traders, developers and project operators. First, there's the security factor — Bitcoin is considered a highly secure environment even by the stringent standards of the blockchain industry. Arguably, Bitcoin has an advantage in this area, compared to Ethereum and most other smart contract chains. Secondly, since BTCFi is a less mature and overcrowded environment than Ethereum DeFi, there are unique opportunities for traders to benefit from its less efficient markets. 

The third advantage is relevant specifically for NFT enthusiasts. Unlike Ethereum NFTs, which store their artwork or other media off-chain while the tokens’ metadata is kept on Ethereum, Bitcoin NFTs — supported by the Ordinals protocol — are stored fully on-chain. All of the metadata and actual media files related to an NFT are kept on Bitcoin. This provides benefits both in terms of security and greater intellectual rights protection.

Finally, BTCFi offers developers and operators a unique benefit: Since BTCFi is an emerging area, there are opportunities to present first-of-its-kind solutions for the ecosystem — something that’s considerably harder to do in the cutthroat world of Ethereum DeFi.

Despite Bitcoin's well-regarded security, BTCFi does have its risks. Some BTCFi solutions rely heavily on off-chain processing, or on the use of sidechains. These environments may not have the same security profile as Bitcoin itself. Secondly, lower liquidity levels may increase losses, due to higher 

Thirdly, the smaller ecosystem of DApps may limit your choice of trading platforms. In addition, the use of wrapped tokens essentially moves your BTC assets to other blockchain ecosystems, which may not be as secure as the Bitcoin chain. There are, of course, also additional transaction costs due to the need to wrap and unwrap tokens.

BTCFi continues to develop and mature, with newer projects like Ordinals and Runes at the forefront of its development. As the BTCFi ecosystem of apps and solutions grows, there will likely be more opportunities in the future for cross-chain transactions and interoperability with other blockchain environments. 

While there are solutions bringing together the worlds of Ethereum and Bitcoin, the BTCFi field has yet to expand to other prominent ecosystems, such as the system of Polkadot (DOT) parachains and the network of Cosmos (ATOM) blockchains. Later in 2024 and in the following few years, we’re likely to see the emergence of such cross-ecosystem solutions as well.

BTCFi is a fast-developing sector, with solutions that leverage smart contract sidechains, wrapped tokens, Taproot upgrade–charged asset management solutions, native Bitcoin NFTs and add-on engines capable of EVM compatibility. The projects we've covered above are some of the most fundamental BTCFi players and true pioneers of this field. 

Naturally, there's still a need for BTCFi to grow larger and offer more diversity and sophistication to traders. This is all happening now, right in front of our eyes. While the current BTCFi ecosystem can’t yet rival that of Ethereum's DeFi, let's not forget one factor that points to its vast potential — the massive funds held in BTC, which still represent well over 50% of the entire crypto market capitalization.

What Is Bitcoin DeFi: The Rise of BTCFi

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards