In the opinion of Spencer Noon, President DTC Capital the total of Bitcoin in the DeFi, will increase 20 times. In other words, the top cryptocurrency, in figures, will reach the equivalent of $ 30 billion USD of Total Blocked Value (TVL) in the Ethereum ecosystem by 2021.
It should be noted that currently the amount of equivalent bitcoins in the North American currency is $ 1.5 billion. In his prediction, Noon relies on the Defi Pulse report, according to which investors have converted 159,293 BTC into ERC-20 tokens.
For many, this is a bold prediction on the part of this analyst. However, it should be remembered that in the middle of the year it was thought that the DeFi would barely reach $ 5 million in TVL by January 2021. Currently they exceed $ 11 billion dollars.
Bitcoin’s current growth in DeFi is another benchmark
Another of the support points of Noon’s claim is the proportional magnitude of growth of the amount of Bitcoin in the DeFi. The DeFi Pulse graph shows the way in which the main cryptocurrencies have entered the ecosystem and have been considerable.
Only an important interruption on September 20, has accompanied the constant growth of the amount of bitcoins blocked in these protocols of the Ethereum Blockchain.
It should be noted that since Bitcoin is the most widely used cryptocurrency, investors use it to buy tokens on the Ethereum network. Therefore, this allows them to participate in the DeFi and enjoy the economic advantages offered by its protocols, be it exchanges, loans, games, etc.
Currently, a large part of the investors in Decentralized Finance are holders, who seek alternatives to the dangers of the traditional financial system. In this regard, Noon and other analysts believe that more investors will proceed to place their funds in Bitcoin on DeFi protocols.
All at DeFi
Another analyst who believes that a huge amount of Bitcoin will be incorporated into the DeFi, is Ryan Selkis, CEO of Messari. Quoted on the Dailyhodl portal, he assures that a probable collapse of the dollar would not be a problem if the funds are stored in Bitcoin.
He also assures that, like him, there are a large number of investors with amounts of Bitcoin. They, he explains, will not move until the most popular of the cryptocurrencies reaches the margin of $ 100,000. “They should never be sold, as they are there in case the dollar collapses”, Sentence.
Regarding this, Noon assures that a scenario similar to the current one of the DeFi, was lived during the biggest increase in the price of Bitcoin in 2017. Although the value rose from 1,000 to 20,000 USD, only 20% of the bitcoins moved for sale. Therefore, in his opinion, it is reasonable for it to be repeated.
In the meantime, he is confident that DeFi will continue to grow and be adopted by more people around the world. In parallel, this will proportionally increase the flow of Bitcoin to them in a very short time.
Data to take into consideration
- The amount of Bitcoin used in the DeFi to buy ERC-20 tokens, is 159,293 BTC.
- Since July, the DeFi have gained a boost that few expected, it could be motivated by the crisis of the pandemic.
- Another analyst, Ryan Selkis, CEO of Messari, believes that, in the face of a possible fall in the USD, forecasts should be taken and holding Bitcoin.
- At the current rate, by the end of 2021, the amount of Bitcoin in DeFi could reach the equivalent of $ 30 billion USD.