Binance is betting big on the potential of Bitcoin DeFi

As the Halving expected on April 20 approaches, Binance Labs, the investment arm of the world's largest cryptocurrency exchange, is banking on the potential of Bitcoin DeFi (BTCFi) by investing in BounceBit, an innovative protocol combining centralized and decentralized finance.

Binance Labs Supports Innovation in Bitcoin DeFi

On April 11, Yi He, co-founder and director of Binance Labs, revealed his venture arm's investment in BounceBit. This innovative platform merges the features of centralized (CeFi) and decentralized (DeFi) finance to maximize the utility of Bitcoin. According to Yi He, “BounceBit opens new avenues for the use of Bitcoin through the merger of CeFi and DeFi.”

BounceBit is opening new avenues for the use of Bitcoin with the merger of CeFi and DeFi. At Binance Labs, we are always looking for innovators who are shaping the industry, and we look forward to following their growth as they fulfill their mission to empower Bitcoin through secure and transparent CeDeFi solutions.”

This investment comes amid growing interest in BTCFi protocols, a new wave of technology aimed at bringing native DeFi capabilities to Bitcoin. Thus, BounceBit, which already has more than 110,000 users and $782 million in total value locked (TVL), aims to expand the use case of Bitcoin beyond a simple store of value.

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The rise of BTCFi as the halving approaches

The growing popularity of BTCFi protocols is particularly visible in the run-up to the Halving scheduled for April 19. Investor enthusiasm was particularly evident during the initial DEX offering (IDO) of MerlinSwap, a decentralized BTCFi exchange, which raised the equivalent of $480 million from more than 52,000 investors.

This record demonstrates strong market demand for Bitcoin-native DeFi solutions, which could ultimately rival the Ethereum ecosystem. Nash Lee, co-founder of MerlinSwap, sees this as “a significant move toward recognizing Bitcoin’s untapped potential in the DeFi space.”

Questioned by our colleagues at Cointelegraph, he declared : “ This success symbolizes the community's eagerness to engage and advance the DeFi revolution on the Bitcoin platform. It thus highlights a decisive step towards recognizing the untapped potential of Bitcoin in the DeFi space, highlighting strong demand for innovative and decentralized financial solutions based on the world's first cryptocurrency.

Binance Labs' investment in BounceBit confirms investors' growing attraction to the potential of Bitcoin DeFi. As BTCFi protocols gain popularity as the halving approaches, it remains to be seen whether this new technological wave will succeed in facing the Ethereum DeFi ecosystem. Nevertheless, the growing interest from major players like Binance Labs suggests a promising future for Bitcoin DeFi.

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