How do you feel about the BTCFi narrative?

The narrative is a type of I'm awaiting the subsequent rally and the reason is pretty simple.

Bitcoin is by far the most important crypto asset, but only a tiny proportion of it is truly being used in DeFi. If native BTC can develop into usable for staking, lending, and collateral with out introducing unacceptable custody or bridge danger, the addressable market is gigantic.

However there's also a problem, and that's the truth that loads of the early BTCFi progress was built around wrappers, bridges, and yield products. That works until you begin asking whether or not an institution holding billions in BTC truly needs those further belief assumptions.

We've seen the sector develop shortly, but we've also seen TVL contract sharply when incentives disappear or danger becomes clearer. So I'm much less considering headline TVL and more serious about whether or not BTCFi can develop sustainable credit score markets around BTC itself. If that occurs, I feel the narrative has legs, if not, it in all probability remains one other cycle the place the thought was greater than the actual utilization.

What do you assume will occur with this narrative sooner or later?