Coin Market

The future of finance is built on Bitcoin — Ethereum was just the testnet

Published

2 weeks ago

March 29, 2025

Opinion by: Alisia Painter, chief operating officer of Botanix Labs

Without Ethereum, the industry wouldn’t be where it is today in terms of bringing decentralized finance (DeFi) to life, making programmability a key feature of blockchains and proving the value of smart contracts at scale. The Ethereum Virtual Machine has become the go-to platform for developers, with the largest ecosystem and tooling.

As DeFi matures, however, it’s worth asking: Is Ethereum the best foundation for the future of financial innovation? Well, the answer might just be Bitcoin.

With nearly $6 billion in total value locked as of March 2025, Bitcoin’s decentralization, liquidity and resilience position it as the natural home for the next era of onchain finance, and while Ethereum’s flexibility has enabled an explosion of experimentation, that same flexibility has come with trade-offs.

From vulnerabilities in smart contracts we’ve seen in big-name hacks to ongoing debates around scalability, Ethereum’s experimental ethos has left cracks in its foundation. By contrast, Bitcoin offers a solid, battle-tested infrastructure where DeFi can flourish sustainably and cross the chasm from degens into mainstream adoption.

Ethereum’s contribution and limitations

Ethereum was responsible for pioneering what we know to be DeFi today. This innovation and development served as a testing ground for what Bitcoin is capable of and can ultimately achieve. Its programmability has empowered developers to create everything from automated lending platforms to sophisticated derivatives. These products exist solely because of Ethereum’s smart contract capabilities.

With that flexibility came serious trade-offs, and we’ve seen them play out in real-time. The DAO hack in 2016 drained $50 million and nearly killed Ethereum in its infancy. The 2022 Wormhole exploit cost $325 million in recent years, and the Ronin Bridge hack took $620 million.

These weren’t just bad luck — they’re the predictable result of Ethereum’s open-ended programmability. Smart contracts are powerful, but they’re also complex. Complexity breeds vulnerability. Solidity simply wasn’t designed with security as the primary consideration.

Recent: Ethereum researcher pitches solution to fix centralization woes, eliminate MEV

At the same time, Ethereum’s scaling challenges have made it increasingly inaccessible.

Network congestion and gas fees soaring to hundreds of dollars during peak periods have effectively locked out average users. Seasoned users will be very well accustomed to the eye-watering gas fees required just to make basic swaps during times of high network congestion. Layer-2 solutions like Optimism and Arbitrum have made great progress, but they fragment liquidity and introduce their own trust assumptions.

This isn’t to say Ethereum is failing. It’s not. As DeFi matures beyond its experimental phase and becomes more mainstream in global finance, we need to ask whether it makes sense to keep building on this foundation or to consider a more resilient alternative.

Why Bitcoin?

Bitcoin’s design philosophy is radically different. It isn’t a platform for unlimited experimentation; it’s a fortress of stability. Its conservative development ethos and proof-of-work consensus make Bitcoin the most secure blockchain in existence. This security translates into trust — a critical ingredient for DeFi applications handling billions of dollars in value.

Liquidity is another advantage Bitcoin offers. With a market capitalization that dwarfs Ether’s (ETH), Bitcoin (BTC) is the most liquid cryptocurrency, making it an ideal base layer for DeFi. The rise of technologies like Bitcoin’s Lightning Network and sidechains like Spiderchain are already unlocking Bitcoin’s potential for smart contracts, offering the programmability developers need without sacrificing security or scalability.

Not all Bitcoin projects are created equal

Many so-called Bitcoin L2s and sidechains claim to be “Bitcoin native,” offering applications the promise of leveraging Bitcoin’s intrinsic security properties.

Let’s set the record straight: Many aren’t truly Bitcoin-native.

Without pointing fingers, these projects often rely on custodial multisig setups, bridge Bitcoin to Ethereum or another chain, and then build rollups on top. While there’s nothing inherently wrong with this approach, and there will be use cases that work with this set of trust assumptions, it’s not the same as being natively built on Bitcoin.

True Bitcoin L2s are designed directly on Bitcoin, tapping into its liquidity, security and resilience — qualities that have withstood the test of time. If we want to expand DeFi capabilities, we must build them on Bitcoin. It’s a straightforward ask, but one worth reiterating as we see major players exploring paths that may not fully align with Bitcoin’s potential.

The path forward

The debate shouldn’t be framed as Ethereum versus Bitcoin. That’s a false binary. Ethereum’s innovation-first approach has been crucial in proving what’s possible, and it remains an essential hub of DeFi experimentation. Bitcoin offers something Ethereum doesn’t: a foundation that has already earned the trust of the broader financial world.

Users shouldn’t have to choose between security and functionality. Bitcoin’s resilience is combined with sophisticated financial tools similar to those pioneered by Ethereum. Some of the most exciting work happening now is at this intersection.

For DeFi to fulfill its promise of creating a fair, open and inclusive financial system, it must move beyond its experimental phase. It must be secure enough that average people can use it without fear of losing everything to an exploit. It needs liquidity deep enough to support real-world financial activity. And it requires the kind of institutional trust that only Bitcoin has achieved.

The future of finance will be built on Bitcoin not because Ethereum failed but because Bitcoin provides the foundation that finance demands.

Opinion by: Alisia Painter, chief operating officer of Botanix Labs

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Coin Market

Saylor signals Strategy is buying the dip amid macroeconomic turmoil

Published

51 minutes ago

April 13, 2025

Strategy co-founder Michael Saylor has signaled that the company plans to acquire more Bitcoin (BTC) following a nearly two-week pause in purchases.

The company’s most recent acquisition of 22,048 Bitcoin on March 31 brought its total holdings to 528,185 BTC.

According to SaylorTracker, Strategy’s BTC investment is up by approximately 24%, representing over $8.6 billion in unrealized gains.

Strategy continues to accumulate BTC amid the recent market downturn that took Bitcoin’s price below the $80,000 level, and the company continues to be closely monitored by BTC investors as a barometer for institutional interest in BTC.

Strategy’s Bitcoin purchase history. Source: SaylorTracker

Bitcoin’s store-of-value narrative grows despite the recent price decline

The current macroeconomic uncertainty from the ongoing trade tensions between the United States and China has negatively impacted risk-on assets across the board.

Stock markets wiped away trillions in shareholder value in response to Trump’s sweeping tariff order, and crypto markets also experienced a deep sell-off.

Data from the Total3, an indicator that tracks the market capitalization of the entire crypto sector excluding BTC and Ether (ETH), shows that altcoins have collectively shed over 33% of their value since the market peak in December 2024.

By comparison, BTC is only down roughly 22% from its peak of over $109,000 in January 2025 and is currently rangebound, trading around the $84,000 level.

The Total3 crypto market cap, pictured in blue, compared to the price of Bitcoin. Source: TradingView

The price of Bitcoin remained relatively stable amid a $5 trillion sell-off in the stock market, lending credence to Bitcoin’s use case as a store-of-value asset as opposed to a risk-on investment.

Speaking with Cointelegraph at Paris Blockchain Week 2025, Cypherpunk and CEO of digital asset infrastructure company Blockstream, Adam Back said the macroeconomic pressures from a prolonged trade war would make Bitcoin an increasingly attractive store of value.

Back forecasted inflation to surge to 10-15% in the next decade, making real investment returns on traditional asset classes such as stocks and real estate incredibly difficult for market participants.

“There is a real prospect of Bitcoin competing with gold and then starting to take some of the gold use cases,” Back told Cointelegraph managing editor Gareth Jenkinson.

Magazine: Bitcoiner sex trap extortion? BTS firm’s blockchain disaster: Asia Express

Coin Market

Web3 needs to be more human, and emotional AI is the answer

Published

3 hours ago

April 13, 2025

Opinion by: Max Giammario, founder and CEO of Kindred

The interfaces and user experience in Web3 tools are terrible, even more so when compared to their Web2 counterparts. This lackluster experience for Web3 is losing the attention of as many users as desired, and with how fast the ecosystem moves, these shortcomings are rarely paid attention to.

AI agents can be an excellent tool to overcome these weaknesses. Their potential to improve development and user experience is remarkable, although it has yet to reach its real potential. Once combined with emotional AI, which will enable us to understand contexts beyond their programming, we will see a quantum leap from Web3 tools to ordinary users.

Web3’s learning curve is very steep

Consider your first interactions with a Web3 wallet — a scary, difficult experience. Many people fear that, at any moment, they could make a mistake, which could mean losing money. This situation can be less uncomfortable if we add agents with emotional AI that can guide new users and provide personalized support, keeping people at ease during their learning process.

If the first interaction with Web3 is seamless in this way, adoption could grow. A better user experience would be a win-win for the entire industry, which suffers from having few users. Reaching a level of adoption of a Web2 tool would be a win for the ecosystem.

Emotional AI companions would make everything easier

With the potential that emotional AI agents have, they would facilitate the experience of new users, and they could serve as personal assistants to interact with the rest of the Web3 tools in a more autonomous, personalized way.

Emotional AI agents could act as motivational coaches, providing continuous, personalized and empathetic accompaniment that enables them to connect deeply with their users and guide them in the best practices to avoid significant losses in Web3.

Recent: Inside an AI-powered Web3 game’s race to 100 million users

These are just some of the most evaluated uses of Web3 today. The more applications it has in the future, the more potential is unlocked. Combining so much state-of-the-art technology, however, entails significant risks that must be considered in its development.

Implementing emotional AI in Web3 carries risks

Integrating emotional AI within the Web3 ecosystem could be very beneficial. Still, it must be considered that it entails risks that any AI has, plus what the use of Web3 implies. One of the most significant risks would be using personal information because, as an emotional AI, it will require more information from its users, which increases the danger of data leakage.

This same personalization could generate an unhealthy dependence on its emotional AI partner, so safeguards against this would have to be implemented. Even being so personalized, it will generate biased information, which will close the scope of the AI agent.

Considering the risks mentioned above, while the technology is under development, by the time emotional AI agents launch, developers can forge the path to reduce these risks and implement all the benefits of this technology.

Emotional AI is the key to greater adoption of Web3

AI tools have become more widespread at a rate we have not seen since the launch of the internet. The speed of adoption is because AI tools have become straightforward tools to facilitate any task. The next step is emotional AI agents, which allow for closer AI companions who can provide better support.

As complicated as the Web3 industry is, if these emotional AI companions became the standard in the ecosystem, all these tools would be available to any user. The Web3 adoption it would facilitate would be enormous, and all this value would be worth the risks.

Opinion by: Max Giammario, founder and CEO of Kindred.

Coin Market

Bitcoin price tags $86K as Trump tariff relief boosts breakout odds

Published

4 hours ago

April 13, 2025

Bitcoin (BTC) hit an eleven-day high on April 13 as the crypto market relief rally closely tracked US financial policy changes.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

Bitcoin traders say brace for more volatility

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching $86,000 for the first time since April 2.

The pair had reacted well to news that US President Donald Trump had decided to exclude certain key products from his ongoing trade tariffs against China.

Traditional markets are closed on weekends —creating lower-liquidity trading in crypto markets and raising the chance for price volatility— with Bitcoin subsequently dropping under $84,000.

With hours to go until the weekly close, BTC/USD was thus up 7% for the week, having started with a trip to new five-month lows.

Commenting, traders were cautious over BTC price strength.

Call me crazy but I don’t think I trust this breakout on $BTC.

Low volume, overbought stoch, and on a weekend.

If we can remain over 84k through Monday I’ll look for higher but for now this seems sketchy. pic.twitter.com/qKVdYAOYPJ

— Roman (@Roman_Trading) April 12, 2025

Daan Crypto Trades noted the ongoing interplay with the 200-day exponential moving average (EMA) at $85,000.

“This is however still a weekend move so far and we know next week will be volatile again with news regarding tariffs and the first big tech earnings coming up,” part of a post on X read.

BTC/USD 1-day chart with 200 EMA. Source: Cointelegraph/TradingView

Well-known trader Peter described the rebound from the lows as looking “more corrective than it does impulsive.”

BTC/USD 2-hour chart. Source: Peter Brandt/X

Popular trader and analyst Rekt Capital meanwhile saw the true hurdle to a Bitcoin bull market rebound coming in the form of a stubborn long-term daily downtrend.

“Bitcoin has Daily Closed above the Downtrend. Thus, breakout confirmation is underway,” one of his latest X updates explained alongside an illustrative chart.

“However BTC has previously Daily Closed above the Downtrend but failed its retest (a few of the red circles). Retest needs to be successful and it is in progress.”

BTC/USD 1-day chart. Source: Rekt Capital/X

As Cointelegraph reported, the daily downtrend, in place since late 2024, is earmarked as a key hurdle for bulls to overcome.

RSI bullish divergence still in play

Another post flagged promising signals on Bitcoin’s relative strength index (RSI) indicator.

A classic leading indicator, RSI continued to print another bullish divergence with price on daily timeframes.

“Bitcoin is developing yet another Higher Low on the RSI while forming Lower Lows on the price,” Rekt Capital summarized.

“Overall, throughout the cycle Bitcoin has formed Bullish Divergences like this on a few occasions already. Each Bull Div preceded reversals to the upside.”

BTC/USD 1-day chart with RSI data. Source: Rekt Capital/X

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.