With the re-emergence of BRC-20 tokens in the Bitcoin ecosystem narrative, the concept of BRCFi has also been introduced. So what is BRCFi? What opportunities and risks does it present? This article, sourced from a tweet by author hmalviya9, compiled and written by BlockBeats, provides an analysis of this new concept.
Introduction:
BRC-20 is not just about speculation! Pay attention to these 6 low-market-value projects: RWA, cross-chain bridges, lending, etc.
Background:
Not just MEME, an inventory of practical narratives and popular projects in the BRC-20 ecosystem.
Table of Contents:
What is BRCFi?
BRC20 in the Summer
EVM Tokens
BRC20 in the Winter
Key Moment
Multibridge
Bitstable
BRCFi IDOs
Associated Risks
BRC20 tokens have seen a general rise in value, and Multibridge intends to build an entire DeFi ecosystem around it, hence BRCFi. Cryptocurrency researcher @hmalviya9 analyzes this new concept in a tweet and lists several BRCFi projects that he is optimistic about.
BRCFi is becoming a highly anticipated story in this bull market cycle, and most people may not have heard of this name before.
Many tokens in this story may see returns of 100x.
What is BRCFi?
Just as created by Multibridge, BRCFi is a DeFi ecosystem powered by BRC20 tokens. It is an interesting name.
As described in their documentation, Multibridge’s goal is to drive BRC20 into the mainstream by building an entire DeFi ecosystem around it.
BRC20 in the Summer:
During this summer, we witnessed the first wave of BRC20 tokens, which saw a surge in “meme coins.” Minting these tokens was very simple, and as a result, enthusiastic investors went crazy with minting, leading to congestion on the Bitcoin network within a few days.
During the BRC20 summer, tokens like ORDI and SATS were launched. The BRC20 craze lasted for a few weeks, and then people suddenly stopped talking about them. Meanwhile, some Ethereum developers found ways to mint tokens on Ethereum and other EVM chains.
EVM Tokens:
A young Indian builder, @mrphygital, recognized this huge opportunity and created a marketplace called Evmink for minting and trading EVM tokens. Evmink has become the most popular place for minting and trading tokens on Polygon, Avalanche, and the BNB Chain.
BRC20 in the Winter:
When Elon Musk pointed out that most NFTs are not on-chain, Ordinals caught attention again. Ordinals gained a new narrative, and people started buying Ordinals again, leading to capital flowing into BRC20 tokens.
Some of the oldest BRC20 tokens, especially ORDI, gained widespread attention. Eventually, it successfully listed on Binance, and within a month of listing, its market cap grew from $100 million to $1 billion. Other centralized exchanges are now also showing great interest in listing BRC20 tokens.
Key Moment:
We all know that BRC20 tokens cannot survive solely on the basis of memes; they need utility and support from the entire ecosystem. While the Bitcoin community has some excellent developers, adoption still primarily happens on the Ethereum chain, so BRC20 needs a bridge.
Multibridge:
Multibridge has built that bridge, enabling cross-chain transactions between BRC20 and ERC20 tokens. It allows for easy transfer of BRC20 tokens between the two main chains.
Multibridge has sparked a wave of activity around the entire DeFi ecosystem of BRC20. Now we have projects like Bitstable, which are building a decentralized CDP protocol similar to MakerDAO. They have issued DAII, an overcollateralized stablecoin for BRC20 tokens.
Within less than a month, Multibridge has recorded a bridge transaction volume of over $279 million, making it the third most utilized third-party bridge in the past 30 days. The price of Multibridge’s native token MUBI has also risen 28 times from its IDO price.
Bitstable:
Bitstable has also become crazy in terms of trading volume and price action. Within less than two weeks, Bitstable’s total value locked (TVL) has exceeded $10 million, and the price of BSSB has risen 64 times from its IDO price.
Now you must be wondering about two questions: besides these two projects, what are some other promising projects, and where are the IDOs of BRCFi projects taking place?
I will reveal some promising BRCFi projects:
Cross-chain bridges: @OrdiZK, @OrdBridge
Money markets: @dova_protocol
Aggregator: @NxHub_io
Launch platforms: @Turtsat, @bounce_finance
BRCFi IDOs:
Everyone knows about Bounce, right? In the past bull market cycle, it was quite popular as an Ethereum-based IDO launch platform. So now, they have transformed into a launch platform for BRCFi tokens.
To participate in future trades, you need to stake AUCTION, DAII, or other required tokens.
Associated Risks:
Currently, BRCFi falls into a very high-risk category. Most teams building BRCFi projects are anonymous, so many of these projects may face “rug pulls.” Moreover, most projects have not undergone security audits, so there is also the risk of being hacked.
Related Reports:
Bitcoin “Halts Blocks” for Over 90 Minutes, Miner Fees Soar, BRC-20 Paralyzes BTC Network?
Bitcoin Token Sentenced to Death? Core Developer Taunts: Bug Will Be Fixed Next Year, BRC-20 Will Disappear!
BRC-20 Continues to Burn: SATS Listed on Binance, Soars 81% Within an Hour
Tags:
BRC-20
BRCFi
BTC
BTC ecosystem
DeFi