How do you feel about the BTCFi narrative?

The narrative is a type of I'm looking forward to the subsequent rally and the reason is pretty simple.

Bitcoin is by far the most important crypto asset, yet solely a tiny proportion of it is truly being used in DeFi. If native BTC can grow to be usable for staking, lending, and collateral without introducing unacceptable custody or bridge danger, the addressable market is gigantic.

But there's additionally an issue, and that's the fact that numerous the early BTCFi progress was built around wrappers, bridges, and yield products. That works till you begin asking whether an establishment holding billions in BTC truly needs those further trust assumptions.

We've seen the sector grow shortly, however we've additionally seen TVL contract sharply when incentives disappear or danger becomes clearer. So I'm less fascinated about headline TVL and more fascinated with whether or not BTCFi can develop sustainable credit score markets round BTC itself. If that happens, I feel the narrative has legs, if not, it in all probability stays one other cycle where the thought was greater than the precise usage.

What do you assume will happen with this narrative sooner or later?