The CEO of MicroStrategy believes that Bitcoin and Lightning Network can increase DeFi. – Mail Bonus

Given the current volatile financial (DeFi) industry, MicroStrategy CEO and Bitcoin spokesman Michael Saylor believes that Bitcoin and the Lightning network can save the DeFi industry.

Within a month after two major protocols, Terra and Celsius, run into serious problems, the DeFi sector is in trouble. Saylor said in a recent tweet that Bitcoin and Lightning could help stabilize the market.

Saylor says Bitcoin provides a “solid moral, economic and technical foundation for DeFi.” He said that the next version of DeFi will be built with Lightning and the BTC symbol.

Saylor was responding to a Bloomberg article on Tuesday that highlighted many important weaknesses in the DeFi industry. The author of Liminal’s digital asset management company, Mahin Gupta, told Bloomberg:

“What is happening with Celsius will have serious consequences for the industry. This is not an insignificant player and his obvious failure will have a knock-on effect. “

Less than a month after the shocking collapse of the Terra blockchain, which promised investors a 20 percent annual return, Celsius Networks discontinued audits and other on-site operations. The collapse of Terra, which occurred when its stablecoin lost a 1: 1 connection to the US dollar, and the freezing of Celsius’ withdrawals have both contributed to the decline of cryptocurrencies.

Because of this, the CEO of MicroStrategy has been very optimistic about the layer 2-scale options of Bitcoin, which is called Lightning Network. Saylor claims that Bitcoin is the future of money and that Lightning protocols will facilitate trading flexibility. He also said:

“If you want to make payments and transactions at high speed, you need a foundation that is morally sound, economically sound and technically sound. That’s what Bitcoin is. But then billions and billions of transactions will go to track 2 like Lightning. “

DeFi apps have not yet become as popular on the Bitcoin network as they are on other blockchains, such as Ethereum and Solana. However, some people who have looked at DeFi believe that it could be used sustainably on the Lightning Network. They say that “stablecoins and fully secured loans against your BTC have value.”

Wil Lee, who created the nonfungible token (NFT) project small, says that BTC and LN could increase DeFi and NFTs. He told the Cointelegraph that some new protocols were still being tested, but protocols such as BTC and LN have already shown how powerful they are on their own.

“Anyone who wants to buy or sell cryptocurrencies must be sure that the market is stable.” When a well-known protocol is involved, I can relax, which makes the whole cryptocurrency ecosystem stronger. If Bitcoin supports your DeFi or NFT project, you’re likely to get more involved.

Aliasgar Merchant of Ignite says that DeFi is “in trouble” and that everyone is doing everything they can to get through the cryptic winter. People pointed to a recent event on Terra and Celius as proof that DeFi, which is supposed to be the foundation of Web3, is failing. Merchant says that synergy and the ability to grow are the two most important parts of a strong DeFi system. He went on to say: “If the foundation is strong, we can focus more on specialist rules to meet our DeFi needs.”

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About Humano

He is a freelance writer based in Turkey. He loves NFT, football, movies and technology.

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