As rival networks continue to innovate and introduce new functions and opportunities, the Bitcoin network must also find interesting and profitable new use cases for BTC holders.

Over the last two weeks, Velar has held the top spot as the most used app on Bitcoin. This platform, best known for swapping, trading, and launching assets on Bitcoin L2s is now gainin g recognition for its efforts to unlock Bitcoin liquidity and contributions to the Bitcoin DeFi movement.

The launch of Velar Artha PerpDex, the world’s first Bitcoin perpetual swaps DEX, unlocks new use cases for L2 assets, such as decentralized futures trading and trading advanced financial products directly on the Bitcoin network. By leveraging the untapped liquidity of the Bitcoin network, Velar aims to become a mainstay in Bitcoin DeFi.

Velar CEO Mithil Thakore told journalists: “The launch of the first Bitcoin PerpDex isn’t just a milestone for Velar and BOB, but for the entire Bitcoin DeFi ecosystem. It unlocks a powerful new use case for L2 assets while leveraging the untapped liquidity of the Bitcoin network. The ability to make perpetual swaps onchain forms a versatile DeFi primitive that will allow Bitcoiners to do more with their assets.”

Launches such as Velar Artha, well received for presenting ways to grow digital wealth whilst keeping full custody of assets, now indicate a wider market shift. Bitcoin DeFi is gaining momentum and popularity, signified not only by the launch of new tools and services that permit trustless staking, but by a dramatic increase in network activity. According to the latest on-chain research from CoinMarketCap, Bitcoin-based DeFi projects now have a TVL of around $1.07bn, a 5.7x increase from January 2024, and an 18.4x increase from January 2023.

Alongside the explosion of Bitcoin DeFi, there’s a noticeable change in public sentiment towards Bitcoin. Once seen as “digital gold”, Bitcoin was something to be held on to as a long-term investment asset, but the rise of Bitcoin DeFi shakes that foundation. Market forces are in action and Bitcoin holders are tired of the inactivity, which is pushing Bitcoin to become known as a tradable asset and financial tool for additional income streams and opportunities.

Bitcoin enthusiasts and general DeFi users are allowed to be excited by recent shifts, and should even expect to see more Bitcoin use cases that leverage untapped network liquidity. Numerous projects have either launched in recent months, or are set to launch soon, and you only have to look at Ordinals and Runes to see that when major Bitcoin innovations arrive, people are ready to act. This is especially true when the new functionalities are parallel to what other top chains like Ethereum and Solana are doing.

One Bitcoin DeFi project leaning into Solana’s liquidity achievements in 2024 is Zeus Network. This cross-chain communication layer between Bitcoin and Solana allows for chain-agnostic transactions that harness the best of both networks. Developers can use that ability to build and scale applications that straddle both chains to combine Solana’s scalability and throughput with Bitcoin’s security and growing liquidity.

Zeus is one of several projects that deliver liquidity bridging services, something that is crucial to all financial ecosystems. Assets need to move quickly and efficiently between different networks, with an intuitive customer journey and clean interfaces, for Bitcoin DeFi adoption to thrive. The better the liquidity, the more adoption can take place, as we’ve seen with EVM-compatible chains and the Ethereum mainnet.

Now, Bitcoiners who have witnessed mixed success and reliability for decentralized apps (dApps) on other networks may argue that Bitcoin truly holds the key to efficient and tamper-proof dApps. While in the past, Bitcoin may have trailed far behind Ethereum and Solana in terms of interoperability and flexibility, it is now narrowing the gap and making a powerful case for itself. This success could lead to new capital inflows, significant investment in infrastructure and innovations, and ultimately, a scenario where Bitcoin L2s rival EVMs and Solana for market share.

If Bitcoin’s enhanced security can’t motivate people and their funds to migrate from other chains to Bitcoin L2s, then the saturation and cost of alternative EVM chains might. If Bitcoin can offer a most cost-effective solution, people will naturally make the best financial decisions for their investments. Once people are ready to move to Bitcoin, there will be a sharp boost in demand for robust liquidity bridges like Zeus and trading platforms like Velar. If the industry can meet this demand, adoption will take place, and the market shift will be rapid.