Runes seem to be a promising way to do exactly what Ethereum tries to keep up with, and Bitcoin can handle this (in 10 minutes increments, with high transaction costs during high demand times, sustainably), but currently only on layer 1. I believe Bitcoin DeFi will probably be a thing in the future though. Runes like Mario Coin comes to mind. I've already seen some hyping startup founders talking about Bitcoin becoming this, but ultimately, it does not provide the functionality of smart contracts, where you have liquidity and other DeFi related tasks. It will be more commonly known as something more than just HODL bitcoin and pay with lightning, and because of it's lack of promises in response times and smart contract functionality, it will sustain such value-providing use cases.