Value Exploration and Potential Analysis of the BTCFi Track

The Bitcoin staking track is迎来新的发展机遇. As more and more projects attempt to provide stable on-chain returns for BTC, Bitcoin is gradually transforming from a "non-yielding asset" to a "yielding asset." This trend not only awakens the dormant Bitcoin but also opens the door for BTC to enter the on-chain yield market, marking a redefinition and release of BTC's value in the entire ecosystem.

As an investor, I believe BTC is the asset more suitable for users to stake. Users holding BTC have the strongest ability to withstand short to medium-term fluctuations, and from the perspective of comprehensive staking returns, the yield characteristics of BTC are more conducive to the steady growth of personal assets. For new users entering Web3, BTC remains the first choice among mainstream crypto assets — with a market capitalization of $1.35 trillion, the largest volume, and the strongest risk resistance among crypto native assets. As long as the opportunities for returns are rich and diverse, most holders will inevitably be drawn to such opportunities.

However, as the application scenarios of Bitcoin assets continue to expand, the risks are also increasing. To this end, some projects have launched a staking abstraction layer, which is essentially a universal standardized security standard and framework for the Bitcoin staking industry. It utilizes smart contract technology and Bitcoin mainnet technology to achieve seamless cooperation among stakers, LST issuers, staking protocols, and other staking service providers, while simplifying the interaction between users and Bitcoin staking protocols. The emergence of this universal security layer will help further develop and strengthen the Bitcoin staking ecosystem.

From an investment perspective, the BTCFi sector holds enormous potential. Some analysts believe that if DeFi reaches the same proportion on Bitcoin as it does on Ethereum, the total value of DeFi applications on Bitcoin could reach $340 billion (25% of Bitcoin's market cap). Over time, its scale may fluctuate between $108 billion and $680 billion (8% and 50%).

However, the Staking/Restaking sector is also facing common secondary market pressures. As more and more projects enter the listing stage, the heavy sell pressure has been brought to the market to enhance the pre-listing FDV. Although many projects have impressive TVL and revenue structures, the performance of the token prices has continued to be sluggish, which has led to doubts about the operating models of some early projects and even affected the performance of related staked assets.

It's not easy for BTCFi to break through the difficulties in this sector. Balancing the performance of cryptocurrency prices in the secondary market is essential to show investors the greater potential of the Bitcoin staking ecosystem. In the future, with continuous technological advancements and gradual improvements in the ecosystem, BTCFi is expected to become an important part of the crypto finance sector, providing Bitcoin holders with more diverse income opportunities.