Home
/
Market news
/
Market trends
/

Why de fi makes bitcoin redundant: the eth advantage

DeFi Revolution | Why Bitcoin Might Be Left Behind

By

Liam Rodriguez

Dec 5, 2025, 06:03 PM

Edited By

Sophia Chen

3 minutes reading time

Ethereum's native token symbolizes growth as Bitcoin's logo fades in the background, illustrating the shift in DeFi importance.

A wave of commentary is suggesting that as decentralized finance (DeFi) takes center stage, Bitcoin may not hold the pivotal role it once did. With the emergence of platforms like Ethereum, trades might happen directly between assets, potentially sidelining Bitcoin.

The Changing Landscape of Trading

Recent thoughts from industry observers indicate that in a future dominated by DeFi, the necessity of Bitcoin could diminish.

  • JourneyMacro hypothesizes that when assets trade directly on a single ledger, the only token required is the network's native one. In Ethereumโ€™s case, that's ETH. He articulated that if, for example, Apple shares could trade directly for Tesla shares, or if currencies like USD could convert to RMB without intermediaries, then Bitcoin's role as a bridge asset becomes irrelevant.

Institutions Are Taking Notice

This evolving viewpoint echoes a sentiment that Ethereum is seen as analogous to the early internet; back then, the main players didn't even exist. "ETH wins in a world built on DeFi," one observer noted, pointing to the rapid growth in tokenization on the Ethereum network. Experts agree this is appealing to institutions. As all assets potentially run through a single settlement layer, the value centers on the asset that keeps this system operatingโ€”ETH.

Reflecting on the Community Sentiment

The user boards lit up with discussions supporting Ethereumโ€™s advantages over Bitcoin. Key takeaways from these discussions include:

  • ๐Ÿ‘ Ethereum's network is currently more utilized than Bitcoinโ€™s.

  • ๐Ÿ“ˆ Some anticipate massive price increases for ETH in the next few years.

  • ๐Ÿค” Thereโ€™s a growing argument that Bitcoin needs to evolve and scale quickly to remain relevant.

Voices from the Community

Users weighed in with mixed sentiments. Comments like "ETH is undervalued right now" and "BTC must scale to stay in the game" highlight a collective hope for Ethereum's dominance, but also a recognition of Bitcoin's established status. An engaging comment summed it up neatly: "They donโ€™t have the same function. So difficult to compare them, but I get your point.โ€

The Road Ahead for Bitcoin

While Bitcoin has established itself as a digital gold, will this be enough against the backdrop of an advancing DeFi sector?

The End: The Future of Cryptocurrencies

As these discussions develop, the crypto world continues to watch closely. Can Bitcoin maintain its shine, or will the shift towards DeFi propel Ethereum and other tokens to the forefront? The coming years promise significant changes as the foundations of digital finance reshape the trading landscape.

"Better safe than sorry, better too early than too late,โ€ sentiments echo as this transformation unfolds.

For more on the evolving world of crypto and DeFi, check resources like CoinDesk or CryptoSlate.

This report reflects the latest opinions and trends in the crypto community as of December 2025.

Shifts on the Horizon

The crypto market is poised for significant shifts in the coming years. There's a strong chance that Ethereum could solidify its position as the preferred platform for decentralized finance. Experts estimate a 60% likelihood that institutional investment will increasingly flow toward Ethereum, fueled by its versatility and ease of asset tokenization. Bitcoin, while still holding value as a store of wealth, may need to innovate rapidly to compete effectively. The chances of Bitcoin enhancing its scalability are around 40%, making it crucial for it to adapt to changing demands to maintain relevance in this evolving landscape.

A Tale of Evolution: The Shift from Landlines to Mobile Phones

Consider the transformative journey from landlines to mobile phones. In the early days of telecommunication, landlines were essential for communication. However, as technology advanced, mobile devices took the lead, making traditional models seem outdated. This parallels the potential landscape in crypto, where Bitcoinโ€™s established presence may not safeguard it against an agile competitor like Ethereum that embraces change and innovation. Just as consumers moved toward convenience and versatility with mobile tech, the crypto sphere may similarly favor platforms that adapt rapidly to emerging needs.