DeFi today can be found mostly flourishing on Ethereum. New applications launch faster than you can keep up with.That empire is only going to grow. The network effects of developers working together and building composable tools that can be stacked and benefit one another is a very competitive moat, making it difficult for other smart contract platforms to compete.
If you consider Bitcoin, it’s the precious treasure that helps to fuel this DeFi adventure as the most liquid store of value in the world with $1T in BTC. Given the global popularity of Bitcoin, its role within DeFi is to continue growing or maintain its popularity as a store of value.
The most urgent heavy lifting in the DeFi community still revolves around the development of money applications at breakneck speed while Eth2 developers scale Ethereum to overcome gas costs. But the more Bitcoin value tokenized and collateralized and provided as liquidity on Ethereum, the more liquidity available to trade, borrow, and transform with new money applications.
In the future we can expect blockchains like Polkadot, Cosmos, and Near, which already have DeFi efforts underway, to release their own DeFi applications and that will offer new opportunities as DeFi users discover more interoperability solutions. For now, most alternative blockchains powering DeFi primitives will remain siloed from the majority of activity on Ethereum and the newly introduced liquidity from tokenized BTC.
The key takeaway here is we all play a part in the future of DeFi but for now, Ethereum will carry most of the weight, trailblazing with unstoppable network effects and innovations releasing daily.