Bitcoin DeFi will have 300M users, beating Ethereum and Solana: Exec

The archetypal decentralized concern (DeFi) institution to motorboat a user-friendly suite of products connected Bitcoin volition “win the full market” of the blockchain’s 300 cardinal users, 1 crypto laminitis says.

Alexei Zamyatin, the co-founder of the Bitcoin furniture 2 Build connected Bitcoin, told Cointelegraph astatine TOKEN2049 successful Dubai that “the vantage of Bitcoin DeFi is that the marketplace is overmuch bigger, you person a overmuch bigger retail idiosyncratic basal that you tin pat into.”

“It’s not casual to person it, but if you negociate to triumph successful Bitcoin DeFi, you triumph the full market.”

Zamyatin said the 300 cardinal Bitcoin users would mean DeFi services connected the blockchain would “outgrow everything we've seen truthful acold successful Ethereum and Solana.” 

Build connected Bitcoin is 1 of the firms looking to triumph marketplace share, offering a hybrid furniture 2 solution that combines Bitcoin’s information with Ethereum DeFi capabilities via BitVM, a level that processes Turing-complete Bitcoin contracts.

Zamyatin argued that Bitcoin-native bridges are indispensable for DeFi connected Bitcoin arsenic the blockchain’s information is strong, but it lacks the quality talent, tools and web effects of Ethereum. 

Alexei Zamyatin speaking with Cointelegraph’s Ezra Reguerra astatine Token2049. Source: Cointelegraph

Zamyatin said Bitcoin (BTC) output and stablecoin products are driving beardown request for Bitcoin-based DeFi.

“A batch of institutions that are buying Bitcoin present usually person to find output connected the assets they hold. So Bitcoin output is becoming a precise blistery and highly sought-after thing.”

Demand for Bitcoin-backed stablecoins is besides skyrocketing due to the fact that Bitcoin is the “best collateral,” Zamyatin added.

What if we tokenized the Bitcoin ETF truthful institutions could get entree to DeFi yields? pic.twitter.com/2HCpwbCZDS

— alexei (@alexeiZamyatin) April 10, 2025

Bitcoin staking has go the main DeFi usage lawsuit extracurricular of payments, which involves Bitcoin holders locking their coins successful self-custodial vaults oregon extractable one-time signatures to gain staking rewards connected proof-of-stake blockchains similar Ethereum.

The Babylon Protocol is presently starring this marketplace with $4.64 cardinal worthy of worth locked, representing astir 80% of each worth locked connected Bitcoin, DefiLlama data shows.

Bitcoin’s DeFi TVL is inactive a fraction of the $54.6 cardinal worthy of worth locked connected Ethereum.

Bridging solutions a arguable topic

Zamyatin acknowledged the galore hacks connected blockchain bridges, but argued astir of those incidents resulted from teams failing to negociate their backstage keys, alternatively than from smart declaration vulnerabilities.

While contention successful the retail marketplace is wide open, Zamyatin noted that galore institutions inactive hesitate to usage bridges, that let users to determination worth betwixt incompatible blockchains.

Related: Bitcoin NFTs, layer-2 and restaking hype ‘completely gone’

Efforts person been made to summation the fig of span signers from 5 to 50 successful immoderate cases, Zamyatin noted.

However, institutions person been reluctant to follow these solutions due to the fact that they often don’t cognize who’s signing the transactions.

For example, the Ren Protocol’s RenBTC operates via a decentralized web of nodes called Darknodes, which motion transactions to fastener BTC and mint RenBTC to usage connected different chains. 

However, institutions proceed to debar these protocols owed to the grade of anonymity progressive and alternatively opt to usage trusted custodians similar BitGo and Coinbase Custody for specified activities.

Magazine: ZK-proofs unlock trillions successful Bitcoin for DeFi — BitcoinOS and Starknet

Additional reporting by Ezra Reguerra.