Despite its dominance, Bitcoin's potential in decentralized finance (defi) has remained largely untapped. However, recent developments suggest a shift in this narrative. Bitcoin's defi moment has arrived, and it's poised to disrupt the industry.

Historically, Bitcoin's defi ecosystem has been limited due to scalability issues and a lack of smart contract functionality. However, innovations like Segregated Witness (SegWit) and Taproot have improved Bitcoin's functionality, paving the way for defi protocols.

The launch of protocols like Ordinals and Runes has revitalized the "Building on Bitcoin" movement, introducing NFT-like inscriptions and fungible tokens. Layer-2 solutions like Stacks have also enhanced Bitcoin's scalability and smart contract capabilities.

According to Spartan Research, Bitcoin defi presents a 7-fold growth opportunity without considering additional liquidity influx. With a market capitalization of $850 billion, Bitcoin's defi potential is substantial.

While some critics argue that memecoins and NFTs have harmed Bitcoin's legacy, they may be necessary to popularize Bitcoin defi and lead to mass adoption. As more smart contract functionalities and scalable defi apps launch, the market will expand further.

The growth of Bitcoin defi will unlock new financial services, including lending, borrowing, trading, yield farming, staking, and GameFi and SocialFi protocols. This will ultimately realize Nakamoto's vision of an alternative financial system.

As the defi summer approaches, Bitcoin's true potential will be unveiled, and permissionless financial services will become accessible to users worldwide. With its vast reserves and improving functionality, Bitcoin is poised to dominate the defi landscape.