MEXCBitcoin’s Lightning Network Is the Answer to DeFi’s Fragile Market Says Michael Saylor
The decentralized finance (DeFi) market has never been in a bad state than now with two big protocols – Terra and Celcius – facing major crises within a month’s time. Some analysts told Bloomberg that there are some major existential issues within the DeFi space.
Mahin Gupta, founder of Liminal, a digital-asset custody platform said: “What is happening with Celsius will have serious repercussions for the industry. It’s a not-insignificant player, and its apparent failure will have ripple effects.”
The recent fragility in the DeFi space is a reminder outsized yields could be sometime too good to be true. However, Bitcoin maximalist Michael Saylor believes that Bitcoin can come to the rescue of the DeFi market. Responding to the Bloomberg article on Tuesday, Saylor wrote:
“The sound ethical, economic & technical foundation for DeFi is Bitcoin. The next generation of DeFi will be built using the #Lightning protocol and the BTC token”.
As such, the MicroStrategy CEO has been quite bullish about Lightning Network, Bitcoin’s Layer 2 scalability solution. Saylor believes that Bitcoin is the future of money and the Lightning protocol will help to scale transactions more efficiently. He said:
“If you’re going to do payments and transactions high speed, you’re going to need a base layer that’s ethically sound, economically sound, and technically sound. That’s what Bitcoin is. But then billions and billions of transactions are going to go on a layer 2 like Lightning.”
Bitcoin Could Be Cheaper Than It Looks
Jurrien Timmer, head of Global Macro at Fidelity wrote that Bitcoin could be cheaper than it looks. He adds:
If we consider a simple “P/E” metric for BTC to be the price/network ratio, then that ratio is back to 2017 and 2013 levels, even though BTC itself is only back to late 2020 levels. Valuation often is more important than price.
Just as CoinGape reported, Bitcoin’s retail accumulation has continued despite this price correction.
- Trump Media Launches Polymarket Rival, Eyes $9B Prediction Market with Crypto.com
- Bitget Lists Common Token, Launchpool Offers 36M COMMON in Rewards
- Coinbase Prime Taps Figment to Boost Institutional Staking on Solana, Cardano, and Sui
- Here’s Why Zcash (ZEC) Price Tanked 10% Today Following 500% Rally
- Litecoin Price Jumps, What’s Behind the Sudden Rally? (28 oct)
- Pi Network Patterns Point to More Gains Despite Manipulation Claims
- HBAR Price Poised to Hit $0.30 as Canary Capital ETF Starts Trading.
- Will Solana Price Rally to $300 as Bitwise Launches $BSOL ETF?
- XRP Price Chart Patterns Hint at 2017-Style Breakout as Evernorth Acquires $1B XRP Ahead of Nasdaq Debut
- Cardano Price Eyes 80% Rally as x402 Upgrade Sparks Hope for AI Payment Expansion
- Polymarket Traders Bet Ethereum Price to Hit $5,000 as Bullish Pattern Forms
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
