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In the world of cryptocurrencies, things are constantly changing, and what was trending yesterday may already seem outdated today. While Bitcoin is still the “digital gold” and the heart of the entire crypto industry, we are seeing more and more investors, both institutional and retail, looking towards autonomous financial instruments (DeFi).
For many who are just starting out, this may seem strange, since Bitcoin is synonymous with cryptocurrencies. But let’s figure out why this shift is happening and how it is changing the rules of the game. And for those who want to be at the forefront and not miss out on new opportunities, they should download 1xBet mobile app for Cambodia for sports betting. Its use provides maximum comfort and responsiveness.
Bitcoin: a chronicle of its development. Does it have a future?
Bitcoin, created in 2009, changed the world forever. It proved that it could be a reliable store of value, protected from inflation and manipulation by central banks. In 2024, after the approval of spot ETFs in the US, Bitcoin experienced a new wave of institutional acceptance. Its price reached new historic highs and its capitalization exceeded $1.3 trillion, but its main drawbacks remain unchanged.
Bitcoin’s problems in 2024-2025:
- Long and expensive transfers. Bitcoin is very slow, with only 5-7 transactions (transfers) per second. On days when everyone is actively using it, the transfer fee can be very high – several dozen dollars. This makes it a poor choice for small expenses. Therefore, people are coming up with new ways to speed it up (Layer-2), but so far, it is not a full-fledged analogue.
- Limited functionality. Bitcoin is, in essence, just “digital money.” It is almost impossible to create complex financial programs, smart contracts, or special systems needed for decentralized finance (DeFi) based on it. It is only suitable for saving money and making payments.
- Volatility. Despite its status as “digital gold,” Bitcoin remains a volatile asset. For example, after rapid growth in early 2024, it underwent a correction of more than 30%, prompting many investors to look for ideas on how to create passive assets that generate income.
These fundamental problems have driven the rapid development of a more convenient and useful system: DeFi.
DeFi: the financial revolution 2.0
Decentralized finance (DeFi) refers to financial transactions and products created on blockchain platforms that operate without banks or other intermediaries. According to DappRadar, by the end of 2024, DeFi had 7 million unique users, and the total value of funds locked in these projects grew by 211%, reaching
$214 billion.
The main reasons why investors are switching to DeFi:
- Attractive returns. DeFi services offer returns that are much higher than those offered by traditional banks. For example, if you deposit your stablecoins, such as USDT or USDC, on sites like Aave and Curve, you can earn 5-15% per year. This helps you save money and grow your wealth.
- Innovative financial instruments. The DeFi ecosystem is constantly evolving. It offers new products such as liquid restaking protocols (EigenLayer), decentralized derivatives exchanges (dYdX), and RWA (Real-World Assets). The volume of RWA reached $16.7 billion in 2024, attracting investments from traditional financial systems.
- Accessibility and global reach. To work with DeFi, you don’t need to open an account with a credit institution or go through KYC procedures. With just a cryptocurrency wallet and access to the Internet, anyone can use financial services. This makes finance open to everyone, everywhere.
These benefits are convincing investors and users to switch from traditional cryptocurrencies to DeFi.
This table shows the main differences between investing in Bitcoin and DeFi.
| What you get | Investing in Bitcoin | Investing in DeFi |
| Main goal | Save money as digital gold | Make your money work for you and generate income |
| How to earn income | On the rise in Bitcoin prices | Earn interests, commissions, rewards |
| Main risks | A sharp drop in prices | Code errors, project hacks, price drops |
These fundamental differences in goals and capabilities make DeFi an attractive option for modern investors.
Leading DeFi projects in 2024-2025
The DeFi market is huge. Several leaders stand out in it, determining what will be trendy and popular.
- Lido (LDO) is the main player in the field of “liquid” staking. It is one of the most popular services, allowing users to invest their Ethereum and receive stETH tokens in return. In 2024, the total amount of funds locked in Lido exceeded $25 billion.
- Uniswap (UNI) is the largest hub for free money (DEX). In 2024, Uniswap remained the leader among DEX exchanges. Its daily trading volume was typically above $1.5 billion, and the total volume of all transactions since its inception exceeded $2 trillion.
- Aave (AAVE) is the main platform where a pool of lenders and borrowers not associated with traditional banks is formed. You can put your digital money there and earn interest on it. Or you can borrow money, leaving your crypto assets as collateral. In 2024, Aave held assets worth between $12 billion and $15 billion.
These examples show that DeFi is not just speculation, but a working and actively expanding financial system.
Conclusion
The fact that investors are switching to DeFi does not mean that Bitcoin is obsolete. Rather, it is simply a new stage in their strategy. Bitcoin is still an anchor asset for long-term investments. DeFi has become a tool for those who want to actively earn and receive income without much effort. This indicates that the market has become more advanced. People now don’t just want to get rich quickly, they want something reliable that will bring in a good income and open up new investment opportunities. When DeFi becomes easier and safer, it will attract even more people and take on a very important role in the world of cryptocurrencies.