Minswap Sets Its Sights on Bitcoin as Cardano Inches Closer to BTC Integration

Minswap, Cardano's largest DEX, stands to benefit from the potential windfall stemming from the network's upcoming Bitcoin integration.

Minswap, the leading decentralized exchange (DEX) on Cardano, is setting its sights on becoming the premier platform for decentralized Bitcoin trading if and when the two networks achieve interoperability.

As Cardano continues making strides toward integrating Bitcoin DeFi, Minswap appears to be well-positioned to reap the early rewards ahead of other projects.

Minswap Poised For Bitcoin Integration

Andrew Throuvalas, senior content manager at BitcoinOS, highlighted several factors that favor Minswap as the first Bitcoin-enabled DEX on Cardano.

“Minswap is the largest DEX on Cardano - the first and largest UTXO smart contract chain that will plug into Bitcoin,” he stated on X.

“That means it will be the first and largest to have a proper BTC DEX. It's hard to overestimate the opportunity.”

According to data from DeFiLlama, Minswap currently has a total value locked (TVL) of $83.43 million. This accounts for over 25% of Cardano’s entire DeFi ecosystem.

Moreover, Minswap’s head start in the emerging Bitcoin DeFi landscape was evident when Charles Hoskinson announced the network’s first Bitcoin DeFi protocol, Cardinal Protocol, earlier this month.

This initiative will bring DeFi functionalities to the world’s largest cryptocurrency, which currently holds a market valuation of approximately $2.2 trillion, to create new avenues for BTC holders.

Specifically, this will enable Bitcoin users to participate in DeFi activities such as swaps, lending, and yield farming.

During the announcement, Hoskinson envisioned a future where institutions could participate in the Cardano blockchain. He explained that if institutions prefer to use Bitcoin, then Cardano would integrate with Bitcoin.

Conversely, if institutions favored another blockchain, such as Ethereum, then Cardano would integrate with that chain instead.

"We go where the opportunity is, and right now, there's a massive opportunity in Bitcoin," he added.

This integration aims to expand the utility of both cryptocurrencies and attract a broader range of participants to the Web3 ecosystem.

"We can open up a trillion-dollar opportunity," Hoskinson said optimistically.

While the Cardinal Protocol marks a major milestone, Minswap’s established infrastructure may allow it to maintain a competitive lead as the ecosystem evolves.