The article discusses how Bitcoin DeFi (BTCFi) is gaining momentum as decentralized finance applications integrate Bitcoin's liquidity into the DeFi ecosystem with the help of Chainlink. The Taproot upgrade in 2021 enabled DeFi on Bitcoin, allowing developers to build complex decentralized applications on the network. BTCFi aims to unlock the vast liquidity of Bitcoin, increasing its functionality and creating new income streams. Chainlink's decentralized oracle network provides data, computation, and cross-chain integration to meet the requirements of BTCFi. BTCFi use cases include borrowing, lending, DEX, and staking services, and Chainlink ensures the security and transparency of wrapped Bitcoin across different blockchains. Chainlink's tools also enable the creation of Bitcoin-native assets, including fungible and non-fungible tokens. BTCFi could potentially help generate transaction fees to sustain the Bitcoin network's security in the long term. Additionally, Chainlink recently announced its integration with PumpBTC, a leading Bitcoin asset issuer. The LINK token has shown a gradual increasing trend, currently trading at around $13. The price may encounter resistance at $15 and potentially challenge the 2024 high of $22.87. The open interest for LINK has been increasing, reflecting trader optimism and expectations for its growth in 2024.



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