How do you feel about the BTCFi narrative?

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

Bitcoin is by far the most important crypto asset, yet only 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 a whole lot of the early BTCFi progress was constructed round wrappers, bridges, and yield merchandise. That works until you begin asking whether or not an institution holding billions in BTC truly needs these further trust assumptions.

We've seen the sector develop shortly, but we've additionally seen TVL contract sharply when incentives disappear or danger becomes clearer. So I'm less curious about headline TVL and extra focused on whether BTCFi can develop sustainable credit score markets around BTC itself. If that occurs, 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 usage.

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