Pantera Capital predicts potential $225 billion accumulation in Defi utilizing BTC blockchain
Pantera Capital analysts have identified a massive opportunity in bringing decentralized finance (defi) to the Bitcoin blockchain, potentially positioning Bitcoin-based decentralized apps as top assets in the crypto industry. According to Pantera Capital, there is a potential for Bitcoin to accumulate $450 billion in liquidity through defi projects, similar to the market shares currently seen on the Ethereum blockchain. Ethereum currently dominates the defi landscape, hosting the majority of activity. Historically, decentralized applications on Ethereum have represented between 8% and 50% of Ethereum’s market capitalization, with the current figure at approximately 25%. If these proportions are extrapolated to Bitcoin, it suggests the network could attract around $225 billion in value. Pantera Capital also predicts that the leading decentralized application on Bitcoin could eventually reach a valuation of $20 billion, firmly establishing itself among the most valuable assets in the ecosystem. Pantera Capital emphasized the importance of selecting tokens with strong underlying protocols and proven product-market fit for long-term success. The hedge fund expects the growth of defi on the Bitcoin blockchain to continue, with total value locked potentially rising to 1-2% of Bitcoin’s market cap.
