The evergreen trend. Why Bitcoin is in demand now and always will be

According to Clark Moody Bitcoin, the Bitcoin blockchain recently processed its 1,232,298,045^(th) transaction. Despite the scepticism of many financial experts, the first cryptocurrency has not only survived, but also strengthened its position, reaching a new all-time high (ATH) of $124,400.

The Bitcoin ecosystem has proven to be highly dynamic and innovative. This dynamism can be attributed to the numerous improvements inspired by the blockchain, including Ordinals, decentralised finance (DeFi) developments, exchange-traded funds (ETFs) and other breakthroughs. Moreover, following the halving phase and the approval of spot Bitcoin ETFs in January 2024, Bitcoin surpassed Taylor Swift and Beyoncé in terms of popularity on Google Search, demonstrating that it is a force to be reckoned with.

In this article, we’ll explain why Bitcoin is here to stay, continuing to develop and grow in popularity.

Bitcoin: Fighting Government Control

The Bitcoin story originated from the CryptoPunks movement, an informal group of individuals passionate about maintaining anonymity and interested in cryptography. They aimed to reduce government control over the financial system. The 2008 financial crisis significantly fuelled this movement. Subsequently, Satoshi Nakamoto built on the work of the CryptoPunks and created the Bitcoin blockchain, which began operating on 3 January 2009 when the first block was generated.

Since then, the system has undergone many changes and improvements. It is becoming increasingly clear that interest in BTC will stabilise among the general public as more people trust this ecosystem, hold bitcoins and contribute to making the first cryptocurrency less volatile. However, it is crucial to recognise that the crypto community must continue to develop the positive trends currently present in the Bitcoin ecosystem. Here are the major ones.

Ordinals. A path to DeFi

BRC-20 tokens and Ordinals on the Bitcoin blockchain have paved the way for Bitcoin’s deeper integration into the DeFi ecosystem. According to CoinGecko, there has been a significant increase in trading volume, with an impressive number of collections experiencing skyrocketing prices.

The decentralised nature of Ordinals, which involves storing content on the blockchain through inscriptions, has realised the CryptoPunks’ vision of a more independent and financially censorship-resistant structure. Thus, the prospect of a fairer system in which people can choose how much they want to pay to expedite their transactions has become more tangible.

Many blockchain experts, including Arthur Hayes, have already invested in Ordinals start-ups such as Oyl, which is developing a new Bitcoin wallet that will facilitate the trading of bitcoin and Ordinals inscriptions.

In April 2024, Magic Eden had the highest trading volume of any NFT marketplace, at $486 million. According to a DappRadar report, Blur relinquished the lead for the first time since its launch. It is now in second place, with the UniSat Ordinals marketplace close behind.

The popularity of Magic Eden and UniSat is due to their support for Ordinals — 70% of the market volume is accounted for by trading tokens issued using the protocol. This will undoubtedly promote the aggregation of the BRC-20 standard in the market and expand the user base.

Furthermore, tokenising real-world assets (RWAs), such as stocks, bonds and real estate, on the Bitcoin blockchain will open up new markets and financial instruments, providing opportunities for seasoned investors and newcomers alike. It will also expand the range of assets available for DeFi applications, enhancing liquidity.

Thus, Ordinals and tokenisation in general have laid the groundwork for the integration of Bitcoin into decentralised exchanges. However, this approach has made Ordinals more expensive and limited in size. Many Bitcoin maximalists believe that this slows down the entire system and compromises the security and reliability of the Bitcoin blockchain. And their concerns are not unfounded.

Finding a balance between creating new opportunities and addressing scalability and transaction fee issues is crucial. As often happens, it is challenges that spur progress. When experts recognised that Bitcoin might be compromised by numerous innovations due to its less scalable nature compared to Ethereum, bright minds developed solutions to address these issues. One such solution is the Lightning Network.

Layer-2 saviour. Lightning Network

As BRC-20 tokens are less flexible and user-friendly than ERC-20 tokens, it was clear that we needed to make the Bitcoin blockchain more adaptable. This is where Layer-2 solutions like the Lightning Network come in, acting as special tunnels that help Bitcoin handle more traffic without becoming overloaded. This technology has proven that Bitcoin can handle a high transaction volume without slowing down or becoming expensive.

The Lightning Network uses micropayment channels to enhance the blockchain’s capabilities, making transactions faster and cheaper. It essentially facilitates a transaction mechanism between two parties, enabling them to make or receive payments from each other. As a Layer-2 solution, the Lightning Network uses the core blockchain as the first layer, with the secondary layer adding functionality and improving performance.

The adoption of this innovation is evident from transaction volumes. Statistics show that the number of Lightning transactions significantly exceeds that at the basic blockchain level.

Although Bitcoin may struggle to develop robust DeFi protocols and applications compared to Ethereum, its solid foundation and growing BRC-20 token ecosystem pave the way for innovative solutions.

This situation is an excellent litmus test for Bitcoin’s promising future in DeFi. As these Layer-2 solutions evolve and become more sophisticated, they will support essential DeFi services such as lending, borrowing and trading — services that are just as crucial as smart contracts.

Smart contracts implementation

The development of Bitcoin smart contracts could open up a world of possibilities for decentralised finance (DeFi), potentially making the Bitcoin blockchain as capable as the Ethereum blockchain. Critics have long argued that Bitcoin is neither as flexible nor as scalable as Ethereum. Historically, Ethereum has been the preferred platform for building DeFi projects due to its rich ecosystem of smart contracts.

However, BRC-20 smart contracts will now enable developers to build applications on Bitcoin with the same ease as on Ethereum. This means that activities such as borrowing, lending and trading can now be conducted without the need for third parties.

Projects such as BitVM already demonstrate Bitcoin’s vast potential. BitVM plays a crucial role in connecting bitcoin to second layers, such as sidechains, rollups, and zkCoins. These second layers can scale Bitcoin to support billions of users, making it more accessible and user-friendly.

2025 milestones

In 2025, Bitcoin surged past the six-figure barrier to reach new all-time highs of $120,000–124,000 in July and August. This rally was fuelled by expectations of US rate cuts, pro-crypto policies under President Trump and substantial institutional investment. However, volatility remained, with a $1.5 billion hack on Bybit in February briefly sending Bitcoin down to the $80k range before it rebounded strongly. Overall, Bitcoin had gained around 30% year-to-date by mid-year.

Institutional and corporate adoption

Spot Bitcoin ETFs boomed, with BlackRock’s fund alone holding over 580,000 BTC. Total crypto investment product assets reached $188 billion. Companies such as MicroStrategy increased their substantial reserves, while banks ranging from UBS to Deutsche Bank expanded their custody and trading services. Payment firms further integrated Bitcoin: Block (formerly Square) began piloting Lightning Network payments for US merchants, and SoFi became the first US bank to use Lightning for cross-border remittances.

Government and regulation

The U.S. government took a strikingly pro-crypto stance: The Trump administration launched a Strategic Bitcoin Reserve, legalised Bitcoin in 401(k) retirement plans and advanced stablecoin legislation. Meanwhile, the EU’s MiCA regulation came into full effect, establishing the world’s first unified crypto framework. The UK has introduced legislation to integrate cryptocurrencies into its financial system, and Hong Kong has passed a stablecoin bill. Nigeria recognised Bitcoin as a regulated security, marking Africa’s biggest step yet.

Conclusion

Overall, these emerging innovations will contribute to the growth and maturation of the Bitcoin DeFi ecosystem, enhancing its capabilities and strengthening its position as a cornerstone of decentralised finance.

Bitcoin’s unique properties make it more secure and less volatile than any other cryptocurrency, establishing its blockchain as the prime choice for developing innovations.

Furthermore, increased investment in Bitcoin ETFs also helps stabilise the ecosystem. For example, the trading giant Susquehanna International Group (SIG) invested $1.2 billion in seven spot Bitcoin ETFs in Q1 of 2024. The company also increased its stake in the ProShares Bitcoin Strategy ETF (BITO) by over 57%.

According to Blockworks, the total ETF market cap is now $139.67 billion.

Experts suggest that Bitcoin’s value could rise to $10 million over the next 15 years — and that may not even be the limit.

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