In light of the recent volatility in the decentralized finance (DeFi) sector, Bitcoin (BTC) maximalist and MicroStrategy CEO Michael Saylor believes that Bitcoin and the Lightning network can come to the rescue of the DeFi market.

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As two huge protocols, Terra and Celcius, face acute difficulties one month apart, the DeFi sector is having a hard time. And in a recent tweet, Saylor suggested that Bitcoin and Lightning could help stabilize the industry.

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According to Saylor, Bitcoin provides a “robust ethical, economic, and technical foundation for DeFi.” He went on to say that the Lightning protocol and the BTC token will be used to create the next generation of DeFi.

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Sailor was responding to Bloomberg’s letter. story on Tuesday, highlighting numerous key challenges in the DeFi space. Mahin Gupta, founder of digital asset storage platform Liminal, told Bloomberg that:

“What happens with Celsius will have major implications for the industry. He is an important player and his apparent failure will have ripple consequences.”

Celsius Networks closed withdrawals and other transactions on its platform just a month after the spectacular crash of the Terra blockchain, which attracted investors with around 20% annual returns. The collapse of Terra, which was caused by its stablecoin losing its 1-for-1 peg to the US dollar, and Celsius’ stoppage in withdrawals, added to the loss of cryptocurrencies.

As a result, the CEO of MicroStrategy is very enthusiastic about the Lightning Network, a layer-two bitcoin scaling solution. According Saylor believes that Bitcoin is the future of money, and the Lightning protocol will help in the scalability of transactions. He added that:

“If you are going to make payments and transactions at high speed, you will need a baseline that is ethically sound, economically sound and technically sound,” he said. “That’s what Bitcoin is. But then billions and billions of transactions will take place at a layer 2 like Lightning.”

To date, DeFi applications on the Bitcoin network have not reached the same level of popularity as on other blockchains such as Ethereum (ETH) and Solana (SOL). However, some people who have studied DeFi believe that it can be implemented sustainably on the Lightning Network. speaking “Stablecoins and fully collateralized loans against your BTC really make sense.”

Bitcoin Lightning Network bandwidth fee is 4000 BTC

According to the creator of the Non-Fungible Token (NFT) project, Wil Lee, BTC and LN can give a boost to DeFi and NFT. He told Cryptooshala that while various new protocols are still in the experimental stage, protocols such as BTC and LN are already showing their inherent strength, adding that:

“For anyone looking to get into crypto, stability is something they want to be sure of. When I know that there is an established protocol in the picture, I gain peace of mind, which also gives strength to the entire crypto ecosystem. Your DeFi or NFT project, backed by nothing less than BTC, will surely find many more takers.”

According to Ignite’s Aliasgar Merchant, DeFi is “struggling” and everyone is doing their best to get through the crypto winter. He highlighted recent developments on Terra and Celius as evidence that DeFi, which should be the core of Web3, is failing. According to Merchant, the two most important aspects of developing a robust DeFi system are interoperability and scalability. He added that “once the base is solid, we can focus more on niche protocols to meet our DeFi needs.”