Can BTCfi Hold Miners Safe?

Every day transaction charges on the Bitcoin community have collapsed by greater than 80% since April, in response to a report from Galaxy Digital. As of August 2025, almost 15% of blocks are “free,” that means they’re being mined with minimal or no transaction charges, only one satoshi per digital byte or much less.

That’s nice for customers, as they will get pleasure from low-cost Bitcoin (BTC) transactions. Nonetheless, it’s changing into a significant issue for miners and, by extension, for the community’s long-term safety mannequin.

Bitcoin’s incentive construction depends on miners being compensated for his or her work by block rewards and transaction charges. However with the April 2024 halving slicing rewards to three.125 BTC per block, miners are leaning closely on the charge market, and it’s drying up.

“As block rewards shrink, extra weight falls on transaction charges,” Pierre Samaties, chief enterprise officer on the Dfinity Basis, informed Cointelegraph. “If utilization doesn’t develop, that base thins, and the ensures weaken. Sustained throughput is crucial for the system to defend itself.”

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Bitcoin onchain exercise slumps

Bitcoin’s onchain exercise has slowed considerably because the decline of non-monetary tendencies like Ordinals and Runes. Galaxy’s report notes that OP_RETURN transactions, used closely through the 2024 Ordinals growth, now account for simply 20% of every day quantity, down from over 60% at their peak.

In the meantime, different layer 1s like Solana are gaining traction for high-frequency use circumstances like memecoins and NFTs. Moreover, the rise of spot Bitcoin ETFs, which now maintain over 1.3 million BTC, has pushed extra BTC quantity offchain, limiting motion that might in any other case generate charges.

Bitcoin’s charge market is elastic by design, that means that charges rise when demand surges and fall when exercise slows. Nonetheless, if demand continues to shrink, miners could also be left with too little incentive to safe the community. Galaxy famous that almost 50% of latest blocks haven’t been full, and mempool exercise stays sluggish.

In opposition to this backdrop, a brand new hope is rising within the type of BTCfi, Bitcoin-native DeFi. In contrast to DeFi on Ethereum (ETH) or Solana (SOL), which makes use of sensible contracts on these chains, BTCfi makes use of Bitcoin as the bottom asset whereas constructing monetary purposes like lending, buying and selling and yield technology on layers or protocols that work together instantly with the Bitcoin community.

“Each BTCfi motion requires shifting Bitcoin,” Samaties defined. “Motion drives computation, computation consumes block house, and house carries value.” In different phrases, if BTCfi grows, so does onchain exercise and charge income.

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From digital gold to monetary primitive

Samaties famous that Bitcoin has lengthy been considered as “digital gold,” a retailer of worth greater than a usable asset. Nonetheless, he sees it evolving into one thing extra foundational: a monetary primitive.

“A monetary primitive is a constructing block builders can use to design flows, instruments, and logic,” he mentioned. “In that function, Bitcoin turns into greater than an asset to carry, it turns into a programmable element inside broader monetary programs.”