Bitcoin News Today: BTCFi's Misstep: Overlooking Mainstream Bitcoin Holders' Needs

Source: [1] BTCFi's Big Problem: 77% of Bitcoin Holders Haven't Even Tried It, Says Survey (https://www.coindesk.com/tech/2025/10/05/btcfi-s-big-problem-77-of-bitcoin-holders-haven-t-even-tried-it-says-survey) [2] North America Crypto Adoption: Institutions and ETFs - Chainalysis (https://www.chainalysis.com/blog/north-america-crypto-adoption-2025/)

A recent survey of over 700 Bitcoin holders in North America and Europe reveals a critical challenge for the Bitcoin DeFi (BTCFi) ecosystem: 77% of respondents have never used BTCFi platforms, while only 8% actively engage with yield-generating or lending services. The findings highlight a stark disconnect between BTCFi's potential and its adoption rates, despite the sector's explosive growth in total value locked (TVL), which surged from $307 million in January 2024 to $6.6 billion in February 2025.

Trust and complexity are primary barriers. Over 40% of surveyed Bitcoin holders indicated they would allocate less than 20% of their holdings to BTCFi products. This hesitancy is compounded by a significant awareness gap: 65% of respondents could not name a single BTCFi project. GoMining CEO Mark Zalan attributed this to the sector's focus on "crypto natives" rather than mainstream Bitcoin holders, who prefer simplicity, custodial services, and regulated options like ETFs.

The survey also underscores Bitcoin holders' appetite for yield and liquidity. While 73% expressed interest in earning returns through staking or lending, and 42% want liquidity without selling their BTC, these ambitions are tempered by skepticism. Zalan noted that Ethereum-based DeFi models, which rely on complex protocols and self-custody, may not align with the risk-averse preferences of many Bitcoin users.

Institutional adoption of Bitcoin, including $179.5 billion in global Bitcoin ETF assets under management by mid-2025, contrasts with the low engagement of retail holders. North America alone accounted for $2.3 trillion in crypto transaction value between July 2024 and June 2025, driven by ETF inflows and regulatory clarity under the Trump administration. Yet, these institutional gains have not translated into broader BTCFi adoption.

The findings present both a warning and an opportunity for BTCFi developers. As Zalan emphasized, platforms prioritizing education, simplicity, and user trust-rather than intricate features-could bridge the gap between Bitcoin's $1.38 trillion market capitalization and its underutilized liquidity. With 19 million BTC in circulation, even a modest shift toward BTCFi could unlock billions in new on-chain activity, provided the ecosystem addresses its accessibility and awareness challenges.