Bitcoin Finance (BTCFi) is becoming a hot topic in the Crypto Assets field, with Bitlayer Labs playing a key role in this arena.

Bitlayer Labs' strategy focuses on meeting two major market demands. The first is institutional demand, as compliance and efficiency have become the top considerations for institutional investors with events such as El Salvador approving the Bitcoin banking bill and Paxos applying for a trust license. Bitlayer offers institutional-grade custody solutions and compliant yield products designed to meet this demand.

Secondly, there is retail demand. Bitlayer attracts individual investors by simplifying the operation process and providing high-yield opportunities. For example, investors can participate in staking through a Telegram bot to earn higher returns than traditional financial products. Compared to holding Bitcoin with zero returns and traditional financial products with an annualized rate of 3-5%, BTCFi staking can provide an annualized return of 8-15%.

However, opportunities and risks coexist in the BTCFi sector. On one hand, the total value locked (TVL) in the Bitcoin ecosystem has grown 12 times in six months, with trading volumes of emerging assets like Runes and BRC-20 exceeding $2 billion, demonstrating significant market potential. On the other hand, this rapidly evolving sector also faces challenges such as regulatory uncertainty and market volatility.

Currently, one important reason for the attention on BTCFi is data support. The amount staked on the Bitcoin chain has increased by 30% quarterly, and the cost basis of institutional investors' Bitcoin holdings has reached $116,000 per coin, highlighting the urgent market demand for Bitcoin appreciation tools.

Overall, BTCFi is transforming Bitcoin from simply being "digital gold" into an asset that can generate returns. In this transition, Bitlayer Labs is becoming the infrastructure provider for this emerging ecosystem, with the potential to play a significant role in future developments. However, investors must remain cautious when participating in this field, weighing the potential rewards against the risks.