According to Cointelegraph, Bitcoin DeFi developer Branden Sedo said that in the next two years, the total amount of capital in Bitcoin-based DeFi protocols may exceed that of the Ethereum network.
Sedo said at Korea Blockchain Week that the trillions of dollars of capital currently held in the Bitcoin ecosystem will gradually move on-chain and eventually surpass the Ethereum network.
He pointed out that as the value of Bitcoin increases and institutional capital is further injected through exchange-traded products (ETPs), a large amount of capital will flow into Bitcoin sidechains and other Bitcoin-based DeFi applications.
Sedo emphasized that the emergence of solutions such as trust bridges and Roll-ups will bring more liquidity onto the chain and bring more opportunities for Bitcoin.
The approval of a spot Bitcoin ETF earlier this year sparked development activity and market enthusiasm for Bitcoin sidechains, including Core, Bitlayer, and Stacks.
However, Sedo said that if Bitcoinâs DeFi TVL is to surpass Ethereum, more Bitcoin holders will need to embrace the idea of ââputting Bitcoin to use, an idea that has been affected by the collapse of platforms such as BlockFi and Celsius.
Nonetheless, Sedo observes that attitudes among many Bitcoin holders toward non-custodial DeFi applications are changing, especially after the Bitcoin 2024 conference.
Sedo is confident in Coreâs non-custodial staking approach, noting that Coreâs bridge is powered by LayerZero and users donât need to worry about custody or private keys.
Currently, Core has become the largest Bitcoin sidechain with a TVL of $314.4 million and 5,541 BTC staked on the network, accounting for 26.4% of the total TVL of all Bitcoin sidechains.
