How do you feel about the BTCFi narrative?

The narrative is a type of I'm expecting the subsequent rally and the reason being pretty simple.

Bitcoin is by far the most important crypto asset, yet solely a tiny proportion of it's truly being utilized in DeFi. If native BTC can develop into usable for staking, lending, and collateral with out introducing unacceptable custody or bridge danger, the addressable market is gigantic.

However there's additionally an issue, and that's the fact that lots of the early BTCFi progress was built round wrappers, bridges, and yield merchandise. That works until you begin asking whether an institution holding billions in BTC truly needs those further belief assumptions.

We've seen the sector develop shortly, but we've also seen TVL contract sharply when incentives disappear or danger becomes clearer. So I'm less considering headline TVL and extra eager about whether or not BTCFi can develop sustainable credit markets around BTC itself. If that happens, I feel the narrative has legs, if not, it in all probability remains one other cycle the place the thought was greater than the precise utilization.

What do you assume will occur with this narrative in the future?