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Author: Evie Source: X, @0xEvieYang
“The super high TVL is hard to arouse users’ excitement, but it is a shame. We look forward to seeing more innovations in BTC native technologies or new asset issuance methods.”
“I remember the days when the group members stayed up late to write inscriptions and IDOs at the end of last year, it was quite lively and interesting.”
Since the inscription boom last year, BTC has become one of the engines of this bull market.BTC has entered the Web3 multi-chain ecosystem through BTC L2, BTCFi and other scenarios, and has even become the main component of some Ethereum L2 and protocols, which has rejuvenated the long-standing assets of BTC on-chain assets of 100 billion US dollars.
Compared with the extreme doll and the ETH of the inner coil,BTC holders have low requirements for expected returns and are more enthusiastic about new users participating, so BTC has become a rare new traffic in the on-chain ecosystem.
In addition, innovative assets of Bitcoin main network, such as inscriptions and runes, have a huge community base due to their fair launch characteristics, becoming another option for secondary market users than VC currency.
However, since April 2024, the BTC ecosystem has begun a period of silence.As for GeniiData’s data board, Ordinals’ trading volume in May 2024 was only half of that in April.
Even though the market is deserted, many BTC-related projects are still building.As of August 12, there are more than 300 BTC ecological projects included on @RootDataLabs.Looking forward to the BTC ecosystem in the second half, it will rejuvenate:
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BTC L2: Let BTC and BTC innovative assets have more landing scenarios under the premise of safety and explore more ways to play;
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BTC Staking/ Restaking: I hope to see more technological innovations, so that BTC can leverage its large-scale and low-cost advantages of a market value of 100 billion yuan, and empower scenarios that require staking/restaking security;
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BTCFi: Based on the broad consensus and brand awareness of BTC, CeFi and DeFi will be better connected, providing stable and considerable returns to DeFi users, and bringing openness, transparency, and permissionless freedom to CeFi users.
So before the new round of BTC ecological heat wave comes, what projects are worth paying attention to?Share my follower list with you.
BTC expansion and innovation in the chain ecosystem
Previously, @weihaoming mentioned that the BTC ecosystem can be roughly divided into two schools:Native technology schoolandUser-oriented.The native technology school mainly explores its potential based on Bitcoin’s unique UTXO and scripting language and tries to develop projects; the user-oriented school uses existing conditions to quickly develop new products based on the needs of market users.
Among the roles of the chain, the difference between these two factions is particularly obvious.Even though BTC L2 has had a wave of popularity before, BTC L2, which has raised millions of dollars, is currently dormant, and BTC L2s, which started at the earliest last year, are also continuing to build.
For example, @BSquaredNetwork has two main products: one is B² Rollup, a Bitcoin rollup based on promise proof; the other is B² Hub, the DA layer of the Bitcoin ecosystem.The project has received investments from funds such as HashKey Capital, OKX Ventures, and IDG.
B² Network recently launched a Buzz Farming campaign, where users can pledge BTC to obtain B² tokens and potential airdrops for related LST projects.According to the official website data, its current pledge is $159.95M.
Buzz Farming has currently launched 6 strategies.One of the strategies is to obtain Babylon’s income through Bedrock, and the other strategy is to obtain U points and $APT of @UniRouterBTC through staking.
I should be considered as the B² team I came into contact with at the end of last year, and I have communicated and cooperated many times during this period.I look forward to B² Network bringing more innovative gameplay and mechanisms to release the energy that has been accumulated for a long time!
The “native technology school” BTC expansion solution I have recently paid attention to is @fractal_bitcoin produced by the UniSat team.After the Fractal test network was officially launched yesterday, $PIZZA also rose by about 20% yesterday.
In addition, @NervosNetwork, which is the same faction, is also preparing for ecological projects.
Opportunities for BTC liquidity pledge and re-pled
BTC liquidity pledge/re-pled @babylonlabs_io is undoubtedly the protagonist of the next BTC ecological recovery.Its latest round of financing is valued at US$800 million and the financing amount is US$70 million, led by Paradigm.Previously, Binance Labs also participated in the investment.
OKX Wallet’s Discover page has a Babylon section.Friends who want to explore the Babylon ecosystem can access it directly through @okxweb3, which is safe and convenient.
There are now several BTC liquid staking projects, including @Lombard_Finance, @LorenzoProtocol, @Bedrock_DeFi, @SolvProtocol.The top three companies have received investment support from Babylon/Babylon co-founder, and are currently mainly focusing on Babylon:
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Lombard: After the user’s BTC is pledged to Lombard, it will be pledged to Babylon to obtain profits, and at the same time, BTC will be cast 1:1 into LBTC.The first phase of LBTC will be issued to Ethereum and can be used in DeFi applications.Now you can add waitlist on the official website.
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Lorenzo: After the user pledges BTC to Lorenzo’s multi-sign wallet, he will get stBTC.This part of BTC will also be pledged to Babylon.In addition, Lorenzo also combines the gameplay of separation of principal and interest, issuing income accumulation tokens YAT and pledge proof token SPT.Currently, Lorenzo has enabled pre-launch staking and staking agent beta mainnet.
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Bedrock: This project initially revolved around the Eigenlayer ecosystem, but recently began to participate in the Babylon ecosystem, aiming to support Ethereum’s wBTC staking to Babylon.Users can obtain UniBTC after pledging wBTC.The relevant stakes have now been opened.
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Solv: This project has been built since 21 years and received investment from Binance Labs in 22 years.Since Solv took the east wind of BTC in April this year, TVL has grown significantly.Currently, SolvBTC has reached US$900 million, supporting seven chains including ETH, BNB, Mantle, Merlin, etc.Looking forward to Slov’s fruits in the future!
Exploration and innovation of applications and infrastructure
Almost every chain of applications and infrastructure has its own three-piece DeFi set, and other ecological applications have changed very quickly.Everyone is familiar with BTC applications, such as @unisat_wallet, @MagicEden, @uxuycom, etc., so I won’t go into details here.
Recently, they communicated with the @BefiLabs team and learned that as trading terminals for BRC20, Runes and Ordinals, they are also continuing to optimize and upgrade their products and establish contacts with partners in various ecosystems. They hope to provide more information to BTC first-layer asset trading users.Sliding trading experience.
Regarding infrastructure, I’m paying more attention to @nubit_org, which aims to build a scalable Bitcoin native DA.The project announced a seed round of $8 million in June this year, led by Polychain, and some active overseas funds also participated.
Based on the BTC ecosystem related projects I have sorted out before, I found that most of them are related to pledge.In my opinion, the purely TVL gameplay has weakened its attractiveness to users after issuing coins such as Manta, Merlin, Blast, etc.The super high TVL is difficult to arouse users’ excitement, but it is actually a disastrous.
In contrast, we still hope to have more innovations in BTC native technologies or new asset issuance methods.
I remember the days when the group members stayed up late to write inscriptions and IDO at the end of last year, it was quite enthusiastic and interesting.
