Recent data reveals a significant drop in daily Bitcoin transaction fees, falling by over 80% since April. This trend is attributed to decreased on-chain activity following the decline of non-monetary trends like Ordinals and Runes. This presents challenges for miners who rely heavily on transaction fees for survival. 2024’s halving event also contributed to this change, as it reduced block rewards significantly. 3.125 BTC per block now compensates miners, impacting their reliance on transaction fees. However, a new solution emerges in the form of BTCfi, a Bitcoin-native DeFi project that aims to overcome these challenges. Unlike its counterparts on Ethereum or Solana which utilize smart contracts on those chains, BTCfi leverages Bitcoin itself as its foundation for lending, trading, and yield generation, all within protocols interacting directly with the Bitcoin network. This approach ensures that every transaction requires movement of Bitcoin, thereby boosting on-chain activity and fee revenue. Furthermore, the shift towards Bitcoin as a financial primitive is gaining traction, driven by recent infrastructure improvements that have transformed Bitcoin from a simple settlement layer to a multifaceted ecosystem. BTCfi offers a unique solution in this landscape, with its focus on building decentralized applications directly within the Bitcoin network.