According to Brendan Sedo, an initial contributor at Bitcoin sidechain Core DAO, the total amount of capital being used in Bitcoin-based decentralized finance (DeFi) protocols could eclipse that of the Ethereum network within the next two years. Sedo believes that the over $1 trillion in capital currently held in the Bitcoin ecosystem will gradually make its way onto Bitcoin sidechains and other Bitcoin-based DeFi applications.

"If you look at Bitcoin, there's over a trillion dollars sitting there," Sedo said. Assuming that Bitcoin will continue to increase in value and attract more institutional capital through exchange-traded products (ETPs), Sedo thinks a lot of this capital will end up being used in Bitcoin sidechains and DeFi apps. "You could feasibly see a lot of that capital coming on chain -- especially with the solutions like trustless bridges and roll-ups that are coming out."

"It's a no-brainer to bring some of that liquidity on-chain and bring about more opportunities for Bitcoin," Sedo added. He believes the rise of trustless bridges and roll-ups will make it easier to bring Bitcoin's capital onto the blockchain and into DeFi, potentially surpassing Ethereum's DeFi total value locked (TVL) within the next two years.

Source: https://cointelegraph.com/news/bitcoin-defi-tvl-top-ethereum-within-2-years-core-dao-contributor

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