Despite the market correction, the Bitcoin DeFi ecosystem will grow
Bitcoin's decentralized application (DApp) ecosystem has been experiencing a revival since the creation of Ordinal and Scripts, introducing native protocols.
One such project, SolvBTC, an omnichain product-generating protocol, has accumulated $700 million in locked-in value (TVL) from bitcoins generated on the Arbitrum, Merlin, and BNB Chains. In a statement to Cointelegraph, the developers of SolvBTC say that the protocol recently passed the 10,000 BTC stake and attracted “over 92,000 participants” shortly after its launch earlier this month.
Ryan Chow, founder of SolvBTC, commented that “the actual BTCFi explosion is an important prerequisite for the Bitcoin Liquidation Revolution.” “In the near future, SolvBTC will launch and connect to additional networks, effectively connecting BTC users, chains and protocols.”
SolvBTC leverages BTC from blockchains like Ethereum, Arbitrum, Merlin and BNB Chain using DeFi products as collateral and resources. The protocol estimates that the strategy can generate annual returns of 5% to 10% on users' BTC deposits.
Meanwhile, Bitcoin layer-2 solution BEVM announced an undisclosed investment from Chinese Bitcoin mining manufacturer Mitmain on April 30. “Next, we will deeply explore the implementation of BEVM's Bitcoin hash rate and PoW ecosystem. Hash rate assets and maximum amount of $BTC for BEVM,” commented BEVM Lead Developer Gavin Guo.
Since the launch of the main network on March 28, BEVM now hosts more than 30 ecosystem projects, boasting over 700,000 user addresses. Based on the Taproot Agreement, BEVM uses BTC as gas payments to power Bitcoin cross-chain and liquidation platforms. The platform is currently valued at $200 million.
Similarly, Bitcoin Decentralized Exchange (DEX) Orders Exchange and sidechain MicroVisionChain announced their 2024 roadmap on April 29. Specifically, Bitcoin DEX will, among other things, integrate “two major exchanges” with Web3 wallets and build a marketplace for Bitcoin invulnerable tokens. .
Previously, Orders Exchange has built a Bitcoin asset bridge with MicroVisionChain to allow fungible tokens to be issued on the native network and exchange BRC-20 tokens with each other, complete with integration with the Bitcoin Runes protocol.
Despite the market selloff, the Bitcoin Ordinals market has grown to $2.3 billion at the time of publication, partly due to the development of the ecosystem, memecoin frenzy and listings on major exchanges such as Binance. BRC-20 tokens reached a peak market capitalization of $1 billion on May 9, 2023, shortly after their inception.
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