The future of DeFi isn’t on Ethereum — it’s on Bitcoin

Opinion: Modano, CEO of Arch Labs

Ethereum is struggling, decentralized financing (Defi) suffers as a result. Layer 2 (L2) solutions have broken liquidity, making capital ineffective. In search of the most green pastures, society turned into Solana-only to find an ecosystem driven by mechanical backed by pump and discharge plans, attract liquidity extracts, and convert the chain into a stadium for speculation and fraud.

Defi needs to re -seize the first principles and correspond to the original Satoshi vision of the decentralized financial system. The only network capable of maintaining the following development of Defi is not ethereum or Solana. It’s Bitcoin.

Defi struggles with ethereum

Ethereum was one day the undisputed home of Defi, but today, it is clear that the ecosystem is struggling. The network road map changes continuously, without any clear path towards long -term sustainability.

L2 solutions were supposed to expand the ETHEREUM range. Instead, they broke the Defi in isolated liquidity. While L2S has reduced transaction fees, she is now competing for liquidity rather than contributing to a unified financial system. The result? A fragmented scene makes capital ineffective and DEFI protocols more difficult.

The proposed solution for Ethereum – stripping the chain – looks a theory, but it fails in practice. The main issue is a structural imbalance of incentives, and as a result, ETHEREUM gradually loses a competitive feature in Defi.

It’s time to ask: Can the Defi future lie in a fragmented eithium?

Solana is not the answer

With ETHEREUM loss on a competitive feature, many developers and users turned into Solana. Blockchain has seen an 83 % increase in developer’s activity on an annual basis, and its dexes (Dexs) excelled over ETHEREUM for a period of five consecutive months.

There is an essential problem: Defi growth in Solana is not based on sustainable financial applications – a group of Memoin.

The recent increase in activity does not depend on innovation in decentralized financing, but through speculative deals. In the aftermath of Trump’s madness, the total value extracted from Mimikwins in Solana ranged between $ 3.6 billion and $ 6.6 billion. This is not Defi- It is a liquidity extraction engine where the short-term speculators enjoy and move forward.

Solana has real strengths. Its speed and low transaction costs make it ideal for high frequency trading, and its ecological system has taken meaningful steps in decentralized physical infrastructure networks (DePins), artificial intelligence and decentralized science, or Desci. But the dominance of Memecoin’s speculation turned the series into a stadium for fraud plans, pump and discharge. This is not the basis Defi.

Solana is not the solution if the goal is to build a permanent financial system.

Bitcoin Devi flourishes

It is time to return to the first principles and build Defi on the original Bolockchain: Bitcoin – the most reliable network, decentralization supported by volume in digital economics.

This is not only a theory. Bitcoin Defi is already suffering from explosive growth. Consider the numbers: The total closed value (TVL) in Bitco DEFI increased from $ 300 million in early 2024 to $ 5.4 billion as of February 28, 2025 – an amazing increase of 1700 %. Stoke Bitcoin, with protocols like Babylon ($ 4.68 billion), Lombard ($ 1.59 billion) and Solvbtc ($ 715 million) that lead these fees. This indicates that the increasing demand for bitcoin becomes a fruitful balance instead of a negative store.

recently: Bitcoin Defi takes the center of the lead

Bitcoin not copy the Ethereum PlayBook book-it’s a pioneer in new financial models. Space developments have provided a double procedure, allowing users to share Bitcoin (BTC) along with the original symbols to boost safety and gain returns. Meanwhile, the new approaches to the bitcoin retail translation code turns mining power into guarantees for lending, borrowing and deception, which increases the expansion of the Bitcoin financial tool.

In addition, BRC-20 decrees and symbols moved the standard higher transactions activity, as the inscriptions reach 66.7 million and generate $ 420 million of fees-with highlighting the increasing demand for distinctive assets on bitcoin.

It is clear that Bitcoin is no longer just a digital gold – it has become the basis for the next stage of decentralized financing.

DEFI’s future on bitcoin

DEFI’s future is located with bitcoin, where incentives are in line with the creation of value in the long run. Unlike the fragmented ethereum model and the speculative economy in Solana, the Bitcoin -based Defi is based on liquidity and sustainable growth.

As the largest and most liquid encryption asset, Bitcoin is proud of a $ 1.7 trillion market size and $ 94 billion in traded boxes (ETF). Even a small portion of this liquidity that is deported to Defi will be a game change. Bitcoin has more than 1 trillion dollars of unusual liquidity and continues to attract strong interest from institutional investors and sovereign wealth funds, as governments have already exploring them as a possible reserve origin.

Many projects already build on Bitcoin, and build a sustainable ecosystem where users can keep the most trusted digital assets while making them fruit through Defi mechanisms.

Ethereum was his moments. Solana was the noise. Bitcoin’s role is to achieve the original Satoshi vision of the decentralized financial system.

Opinion: Modano, CEO of Arch Labs.

This article is for the purposes of general information, and it is not intended to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.