Original author: Biteye core contributor Oliver
Original editor: Biteye core contributor Crush
You may or may not have heard of BTC-Fi. Even though BTC-Fi will activate a large portion of Bitcoin's maximum value, the market simply doesn't care.
(Translator's Note: If you haven't heard of BTC-Fi, you should have at least heard of De-Fi, Game-Fi, NFT-Fi before. BTC-Fi refers to the money-making model derived from Bitcoin.)
This is just a narrative, but very interesting: a layer-2 network based on Bitcoin! Today, I'm going to share in depth some of the research I've done over the past week.
What are Ordinals?
It all starts with Ordinals. Ordinals are a way to put NFTs on the Bitcoin chain. This phenomenon has been going on since a few weeks ago, and Bitcoin Punks is the most popular one right now .
You have to go OTC (over the counter) on Discord to get the NFT on the Bitcoin chain. This process is very complicated because you cannot spend the Satoshi containing the NFT art or it will be gone forever.
(Translator's Note: Satoshi is the smallest unit of Bitcoin. NFT is stored in Satoshi. Once the picture is stored, the btc of this Satoshi unit cannot be used.)
Thanks to @voyboy, a market where people can freely trade NFTs on the Bitcoin chain: https://ordinals.market
NFT on the Bitcoin chain is very hot . Many funds want access to it, and it's only going to grow in popularity. Even @yugalabs announced yesterday that they will be releasing an Ordinal collection.
Since these Ordinals start new innovations within BTC, people (including me) are paying attention to $STX. Since STX is intended to be a network layer for Bitcoin, it is regulated.
The price of $STX quickly climbed, and the BTC layer narrative was born. I see a lot of people talking technically about $STX because it's not a "true" layer 2 network. But if you look at their documents, they are developing a new product (sBTC) and have a corresponding market. (Translator's Note: After sBTC goes online, STX can confidently call itself the second-tier network of btc.)
Bitcoin backed by LSD
This brings me to the second interesting place, which is $BADGER. Badger announced last week that it would release an LSD - backed bitcoin via Spa daboom .
quite interesting. It doesn't look like the market really cares about it, which makes me realize that people aren't really grasping the upcoming BTC-Fi narrative. Bitcoin (synth) backed by LSD will be called eBTC. It is backed by liquid collateralized Ethereum and denominated in Bitcoin.
Just like DAI is backed by many assets, but it is a stable currency denominated in US dollars. So I'm asking myself: why would anyone mint a Bitcoin-denominated cryptocurrency backed by liquid collateralized Ethereum. I don't need to explain to you how massive liquidity staking is (I bet more LSD backed stablecoins/assets will be introduced during/after the Shanghai fork).
To me, it sounds like Bitcoin and Ethereum could actually be merged together. This will drive maximalists on both sides crazy. Imagine being able to use eBTC on Bitcoin's Layer 2 network?
Ren and the Bitcoin Network
The third interesting place is: $REN. Ren is an OG DeFi protocol that has been active since 2017. Yesterday, I saw some Chinese accounts spreading rumors that CZ will acquire REN as a layer network (2nd layer network? ) of Bitcoin . Obviously this is a rumor (at least for now), but to me, it makes total sense.
CZ knows that BTC-Fi will be a future narrative. CZ wouldn't be CZ if he wasn't exploring the narrative to gain traffic exposure to that narrative.
Since REN technology has basically failed because of the series of events between Alameda and FTX. I wouldn't be surprised if the takeover is real. REN has always been reliable and has never been successfully hacked. If REN focuses on Bitcoin's hierarchical network, there will be new opportunities to thrive.
(Translator's Note: All the new narratives surrounding Bitcoin actually have one thing in common: increasing the liquidity and transaction attributes of Bitcoin ecology. The value of Bitcoin before may still revolve around its own value, but now the ecological value of Bitcoin The prosperity is feeding back on Bitcoin itself.)
I bought a lot of $REN at 9 cents. Looking at the chart, it appears that some big whales are accumulating at the bottom, even pulling the price up to almost 15 cents on Binance.
Most of the liquidity is on centralized exchanges because on-chain liquidity is poor. If the rumors are true, then as a Binance-backed Bitcoin layer, $REN has no problem reaching a market cap of 100 million and 0 unlocks.
Worst case, it's not true, then I'll only lose 10-20%? Obviously not financial advice, but I think it's reasonable to disclose the positions I have here.
Now, if you managed to read the entire article, congratulations. I will reward you for encrypting the alpha information that Twitter Shanghai did not mention.
Zero Dao Chance
Outside of those places I've connected and seen , let me introduce you to some alphas that I've admired in the past, but are now a huge opportunity @zerodao.
I wrote a feature about it in September, which you can read below:
https://twitter.com/ZoomerOracle/status/1570081333824684033
Basically, Zero Dao is a messaging protocol that connects Bitcoin/zcash and Ethereum assets. Remember when I was talking about eBTC (badger) and bridging it to the Bitcoin L2 network?
Well, I believe Zero Dao will be a key player in that. In order to merge the Ethereum ecosystem with the Bitcoin layer, you will need a proper way to send your assets from Bitcoin <> Ethereum. Zero Dao used to be based on Ren technology.
Now that Ren shut down their service, Zero Dao is developing from scratch and will go live soon (layer 0 network).
I've used Zero Dao before and it has a very smooth user experience (reliable like $SYN and $STG). They don't have any tokens (at least not yet), which is why I'm telling you this is some alpha, because I haven't seen anyone talking about it yet.
There will be a way to get characters in their Discord, which will give potential incentives on Zero Dao. I propose that you can help them do community work to introduce them in the BTC-Fi narrative.
All in all, a lot of things are being built with BTC-Fi. Like I said, like it or not, it's happening. I recommend focusing your energies on new narratives, because there are huge opportunities coming your way.
Translator Analysis:
As the author said, BTC-Fi will be a very hot and popular new narrative in the future. From the NFT trading market on the Bitcoin chain, to Bitcoin's Layer 2 network, to some emerging projects actively built on the Bitcoin ecosystem, all reveal the re-prosperity of the Bitcoin ecosystem.
The translator recommends that everyone continue to pay attention to the Bitcoin ecology and the emerging ecological projects above, because the endless wealth codes will be hidden in it!
