The Solv project, as a pioneer of on-chain micro-strategies, has taken an important step in the BTCFi field, successfully landing on the Binance and Hyperliquid platforms, bringing a good start to the BTCFi sector. With the addition of projects like Babylon, Lombard, Corn, Bitlayer, Lorenzo, and Yala, it is expected that 3-4 mainstream competitors will emerge in the BTCFi field. This marks the rise of the BTCFi track.
Looking back at previous BTCFi analysis reports, the following conclusions can be drawn:
Bitcoin is expected to become the national reserve asset of the United States, which will promote Bitcoin as an important asset for national and institutional allocation, thus generating significant demand for institutional-level financial services targeting Bitcoin, such as lending and staking, fostering institutional-level BTCFi projects;
The development of BTCFi mainly revolves around two directions: first, enhancing Bitcoin's profitability, with representative projects including Babylon, Solv, Echo, Lombard, Lorenzo, Corn, etc.; second, improving Bitcoin's liquidity, with representative projects such as Wrapped BTC, Yala, Avalon, etc.;
From the perspective of gold's history, the launch of gold ETFs 20 years ago caused gold prices to soar by 7 times, with the core being the transformation of gold from a passive asset to a financial asset, thereby enabling broader financial operations. Similarly, BTCFi has endowed Bitcoin with more financial attributes, expanding Bitcoin's financial application scenarios and value capture capabilities, which will have a profound impact on Bitcoin's value and price in the long run. Although the development of the Bitcoin ecosystem has only been two years, its potential is enormous, and the future is full of hope.
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