Coinranking
| # | Coins | Price | 24h | ||
|---|---|---|---|---|---|
| | |||||
| | 1 |  | $ | -2.79%  | |
| | 2 |  | $ | -8.03%  | |
| | 3 |  | $ | -5.90%  | |
| | 4 |  | $ | +0.36%  | |
| | 5 |  | $ | -7.52%  | |
| | 6 |  | $ | -2.80%  | |
| | 7 |  | $ | -9.00%  | |
| | 8 |  | $ | -4.85%  | |
| | 9 |  | $ | -2.27%  | |
| | 10 |  | $ | -14.66%  | |
| | 11 |  | $ | -8.34%  | |
| | 12 |  | $ | -14.04%  | |
| | 13 |  | $ | -3.01%  | |
| | 14 |  | $ | -4.39%  | |
| | 15 |  | $ | -2.79%  | |
| | 16 |  | $ | -0.73%  | |
| | 17 |  | $ | -1.31%  | |
| | 18 |  | $ | +2.30%  | |
| | 19 |  | $ | -1.62%  | |
| | 20 |  | $ | -6.91%  | |
| | 21 |  | $ | -1.90%  | |
| | 22 |  | $ | -9.37%  | |
| | 23 |  | $ | -2.02%  | |
Top gainers
| Coins | Price | 24h | |||
|---|---|---|---|---|---|
| | | $ | +0.36% | ||
| | | $ | -2.27% | ||
| | | $ | -2.80% | ||
| | | $ | -2.79% | ||
| | | $ | -4.85% | ||
| All gainers | |||||
BTCFi, or Bitcoin Decentralized Finance, refers to an emerging ecosystem of decentralized financial (DeFi) services and applications built on the Bitcoin network and its associated technologies, such as layer-2 solutions and sidechains. It expands Bitcoin's utility beyond being a store of value or digital gold, enabling users to engage in financial activities without relying on traditional financial institutions.
Key Aspects of BTCFi
Lending and Borrowing
Platforms allow users to lend their Bitcoin and earn interest or borrow assets by collateralizing their Bitcoin.
Tokenized Bitcoin:
Tokenized versions of Bitcoin (e.g., Wrapped Bitcoin or WBTC) are created on other blockchains like Ethereum to enable interaction with DeFi platforms that Bitcoin’s native chain does not natively support.
Decentralized Exchanges (DEXs)
Users can trade Bitcoin or Bitcoin-backed tokens directly with others through decentralized exchanges, avoiding centralized intermediaries.
Cross-Chain Interoperability:
BTCFi solutions often support cross-chain technologies that allow Bitcoin to interact with other blockchain ecosystems seamlessly.
Security and Transparency:
Leveraging Bitcoin's strong security infrastructure and decentralized nature, BTCFi applications provide tamper-proof financial interactions with high levels of transparency.
Examples of BTCFi Use Cases
- Interest-Earning Protocols: Deposit Bitcoin into lending protocols to earn yields.
- Decentralized Trading: Trade Bitcoin or Bitcoin-backed assets on platforms like Uniswap or SushiSwap.
- Tokenized Derivatives: Access derivatives markets with Bitcoin-based collateral.
BTCFi Tokens and Tools
- Wrapped Bitcoin (WBTC): A tokenized version of Bitcoin used on Ethereum.
Sovryn (SOV): A DeFi platform native to the Bitcoin blockchain. - Lightning Network: A layer-2 solution enabling faster, cheaper Bitcoin transactions, foundational for BTCFi apps.
BTCFi is still in its infancy but has the potential to transform Bitcoin’s role in the broader cryptocurrency landscape by integrating decentralized finance capabilities.