Foresight News posted on X (formerly Twitter) discussing the future trajectory of the BTCFi ecosystem following the anticipated institutional Bitcoin surge in 2025. Initially, BTCFi relied heavily on subsidies and incentives to drive annual narratives, creating temporary arbitrage opportunities that quickly attracted liquidity. However, sustaining these gains long-term proved challenging.
As the market progresses into 2026, the focus of competition is shifting. With institutionalization advancing, market preferences are leaning towards revenue structures driven by fees and services. While yield can capture attention, revenue is crucial for sustainability and serves as a valuation anchor.
Following the institutional surge, BTCFi faces new challenges. The practices of Coredao Org offer a typical example of how the ecosystem might evolve in response to these changes.