In Part 1 of this sector analysis, we explored the transformative rise of decentralized finance (DeFi) applications on the Bitcoin blockchain. This evolution signifies a pivotal shift in leveraging Bitcoin, the world’s most secure and decentralized cryptocurrency, for financial innovation. By building on Bitcoin’s unparalleled strengths—security, decentralization, and immutability—Bitcoin DeFi introduces a new era of self-custodial and trustless financial services.