Alexei Zamyatin, co-founder of Build on Bitcoin, recently claimed that the first firm to offer a user-friendly suite of DeFi products on Bitcoin will dominate the market, tapping into an estimated 300 million Bitcoin users. Zamyatin argued that the retail user base for Bitcoin DeFi is much larger, indicating that Bitcoin could surpass the DeFi ecosystems of Ethereum and Solana. He emphasized the growing demand for yield and stablecoin products, stating that institutional investors are increasingly seeking to leverage their Bitcoin holdings for yield generation. However, he acknowledged the need for Bitcoin-native bridges for effective DeFi functionality, despite existing concerns over security and hacks associated with blockchain bridges. Currently, the Babylon Protocol leads Bitcoin DeFi with a significant portion of total value locked, but Bitcoin's overall DeFi TVL remains well below Ethereum's. Zamyatin noted that many institutions prefer trusted custodians over decentralized solutions due to the anonymity involved in some protocols, thus illustrating the challenges facing Bitcoin DeFi adoption.

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