Why am I still firmly optimistic about BTCfi? Even more optimistic about Lombard?

Today, if you only look at TVL, you might think that Bitcoin DeFi is just a niche ecosystem. But when you compare this market with the market capitalization of Bitcoin itself, you will find a huge potential gap, the ratio of BTC DeFi TVL to the network market value:

Ethereum 21.28% ｜Solana 9.98% ｜ Bitcoin 0.29%

In other words:

※ On Ethereum, for every 5 dollars, 1 dollar is involved in DeFi.
※ On Solana, for every 10 dollars, 1 dollar flows onto the chain.
※ But what about Bitcoin? For every 300 dollars, there is only 1 dollar participating in BTCfi~

▰▰▰▰▰

What kind of concept is this?

Even though today's BTCfi total TVL has reached ~$7B, which looks quite good, its ecosystem is actually just getting started. Looking at the timeline, the entire Bitcoin DeFi explosion period has only been about a year.

You might say that the growth is a bit slow. But if you are familiar with the development cycle of infrastructure, you will know that this speed is faster than when other mainstream chain ecosystems took off, and it is more resilient!

▰▰▰▰▰

Is this the top? NO NO NO

Of course not! 0.29% is an incredibly low number for the asset with the strongest consensus and market value in the history of cryptocurrency.

If BTCfi can achieve a more realistic 5% penetration rate, which means 5% of Bitcoin's market value is used for on-chain financial activities, that would represent a 17 times growth potential, corresponding to a TVL of ~$112B, even surpassing today's Ethereum!

You might call this prediction radical, but remember: TradFi does not let assets sit idle. And BTCfi is precisely the key bridge that turns holding Bitcoin into unleashing productivity.

▰▰▰▰▰

Who will be the biggest winner of BTCfi?

The two main pillars of BTCfi currently are:

🥇@babylonlabs_io (TGE completed, TVL ~$5.17B)
🥈@Lombard_Finance (TGE not yet, TVL ~$1.62B)

Babylon turns Bitcoin into PoS verification assets, addressing the first issue of idle capital in Bitcoin.
But the deeper opportunity lies in building the entire infrastructure of the Bitcoin capital market. This is exactly Lombard's entry point.

It is not an accessory of Babylon, but an independent platform that promotes the logic of the BTCfi capital market:

From staking, debt instruments, to credit markets, and then to institutional access, truly connecting to the financial demands of large funds for Bitcoin.

Lombard is also very likely to become the next leading product explosion curve of the BTCfi protocol. Once it runs through the product model, subsequent capital flow and developer follow-up will quickly form an ecological flywheel.

▰▰▰▰▰

In summary, BTCfi is not a dream, nor a narrative. It is a structural trend that has long begun, but is only now just entering the main upward phase!

Do you remember the SparkFi I shared before? It was among the top six DeFi projects before the TGE, and it has risen the most recently! Lombard is in the top two of BTCFi, and it hasn't had its TGE yet! This is definitely one of the earliest Alphas in the Bitcoin ecosystem; missing this is like missing out on a hundred million!

#KaitoYap @KaitoAI @JacobPPhillips @Lombard_Finance #Yap