There's a shift happening in DeFi that most people are missing. Bitcoin is transforming from a static store of value into productive collateral at the intersection of BTCfi and RWAs. The Numbers ~70% of Bitcoin's supply hasn't moved in 6 months, about $1.6 trillion sitting idle. (According to @cryptoquant_com's Bitcoin: UTXO Age Bands) For context: • DeFi TVL: $161B • Stablecoins: $299B • Ethereum's market cap: $523B Unlocking just 5% of dormant Bitcoin would inject $80B+ into crypto, more than the entire lending market's 2021 peak of $64B. What's Changing Projects like @yalaorg, @avalonfinance_, and @BimaBTC are letting users use BTC as collateral to mint stablecoins. These Bitcoin-backed stables are now being integrated directly into RWA markets, connecting BTC to real-world credit, commodities, and other assets. @ArkisXYZ and @DesynLab are building institutional-grade credit markets where Bitcoin serves as collateral, mirroring traditional prime brokerage but with DeFi's USPs. In parallel, players like @plumenetwork are laying the infrastructure necessary to integrate BTC <> RWAs, with built-in compliance, RWA rails, and EVM compatibility. Bottom line: Bitcoin is transitioning from a passive SoV to a yield-bearing, compliant asset for global finance. And this shift opens the door to an immense TAM. One example is the credit market for SME in emerging markets, which the World Bank estimates to be a $5 trillion credit gap. Bitcoin-backed lending could address this without the friction of traditional banking infrastructure. With self-custody, compliance, and RWA integration, BTC becomes a base asset for global finance. The BTCfi x RWA merge is very real.

Tagging some BTCfi chads you should follow @theadvisorbtc @Eugene_Bulltime @YashasEdu @rektonomist_ @arndxt_xo @belizardd @eli5_defi