Charles Hoskinson, founder of Cardano, believes that DeFi in the Bitcoin ecosystem will surpass all other crypto DeFi within the next two to three years.
He praised the potential of Bitcoin DeFi while making a bold price prediction and highlighting a new model for connecting BTC without resorting to centralized exchanges.
“I started in Bitcoin and I love Bitcoin. Bitcoin has been a big part of my life and the only reason I am here today is because of Bitcoin,” he said in a YouTube video posted on November 27.
He expressed frustration with using Bitcoin in the early days but said that “Bitcoin has gone from a sleeping giant that never woke up from its innovation coma to a waking giant that is four times larger than Solana and Ethereum combined,” adding:
DeFi in the Bitcoin ecosystem will surpass DeFi in all ecosystems in the crypto industry within 24 to 36 months, and that's just because of scale and liquidity.
Hoskinson also pointed to the discussions the government is currently having around a Bitcoin strategic reserve, claiming that BTC alone is their entry point:
“I believe Bitcoin will reach $250k to $500k in the next 12 to 24 months because of the massive investment and interest that has been generated.”
Simply put, Bitcoin is the store of value of the internet, and it will maintain this role for the foreseeable future now that it has a DeFi layer,” he added before describing a new model for bringing DeFi capabilities to Bitcoin via the Cardano network that he described as “DeFi mode.
Users can “activate DeFi mode” by pegging their Bitcoin to an equivalent token on Cardano, he said. This allows Bitcoin holders to participate in DeFi ecosystems, trade on decentralized exchanges, use Yield tools, and retain control of their private keys.
A Cardano-Bitcoin bridge based on the Grail protocol was announced by a Cardano-supporting development team in October.
According to the platform protocol's specifications, the bridge could be the first step towards providing DeFi applications secured by Bitcoin.
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