Binance, a cryptocurrency exchange, recently partnered with Bitcoin Layer2 project BEVM to launch an airdrop campaign, which has attracted market attention. It is worth noting that Binance has not previously collaborated with any projects, so what makes BEVM able to collaborate with Binance? What mysteries may lie behind this partnership?
Binance’s Need for Bitcoin Layer2
To understand the strategic significance of Bitcoin Layer2 (L2) in Binance’s Web3 wallet competition in 2024, we need to look back at the competition surrounding the Bitcoin ecosystem in 2023.
OKX undoubtedly emerged as the biggest winner in the Bitcoin ecosystem wave of 2023. They quickly responded to market demands and user traffic by collaborating with UniSat Wallet to establish industry standards and supporting BRC20 token transactions and BTC NFT trading and pledging. Their Web3 wallet became a popular tool among industry users and even replaced established wallets like MetaMask, making OKX a prominent player in the crypto wallet race.
On the other hand, Binance, as a leading exchange, lagged behind OKX in terms of Web3 wallet and Bitcoin ecosystem development, missing out on the potential market opportunities. Therefore, since late last year, Binance has been accelerating its efforts in Web3 wallet and Bitcoin ecosystem development.
Given OKX’s strong position, Binance needs to find a breakthrough to compete in the Bitcoin ecosystem in 2024. Supporting BTC L2 projects, which are essential infrastructure projects, could be a good strategy. By supporting a top player in the Bitcoin L2 space, Binance can attract user traffic and community attention, opening up channels for market capital inflows, and potentially surpassing OKX’s Bitcoin ecosystem.
Why BEVM?
Binance’s collaboration with BEVM is crucial to accelerate its embrace of the Bitcoin L2 ecosystem, expand its leading position in the Bitcoin narrative, and lay the foundation for the growth of new DApps, new users, and the total value locked (TVL) in the Bitcoin ecosystem.
BEVM has a long history in the Bitcoin ecosystem and is considered a seasoned veteran. The BEVM team was established in 2017, and its founder, Gavin, participated in the development of China’s central bank digital currency (DCEP) in 2016. In 2017, they completed the underlying code of the well-known public chain, Biyuan Chain. In May 2023, BEVM introduced a fully decentralized Taproot-based BTC L2 solution called Taproot Consensus, which achieved complete decentralization and scalability.
Compared to other BTC L2 solutions on the market, BEVM’s Taproot Consensus stands out in terms of technical innovation, decentralization, and feasibility. Its mechanism design ensures a high level of decentralization and addresses security risks associated with other BTC L2 solutions.
BEVM recently completed a financing round with a valuation of $200 million, with participation from top crypto institutions, demonstrating its recognition in the capital market. Since its mainnet launch on March 28, BEVM has gained over 600,000 user addresses, indicating its market competitiveness in the BTC L2 space.
What’s Next?
Binance’s collaboration with BEVM in the BTC L2 space is just the beginning of its BTC L2 strategy and its efforts to establish its presence. Binance has a typical approach to projects in its Binance Labs incubator program: investment, token mining, and listing. Therefore, the collaboration with BEVM in the airdrop campaign is likely just the start, and BEVM may become part of Binance Labs’ portfolio.
As the BTC L2 space continues to evolve, several multi-billion or even trillion-dollar projects are expected to emerge. Binance’s focus on the BTC L2 space is both a strategic move and a response to market trends. No exchange would ignore the massive and attractive Bitcoin ecosystem.
For regular users, identifying promising projects and seizing opportunities is key to capitalizing on this wealth-generating opportunity. As the first BTC L2 project to collaborate with Binance’s Web3, BEVM is definitely worth paying attention to.
Related Reports:
– Biteye | 2024 Outlook: Bitcoin Ecosystem, Modular Blockchains, MEME, DePIN
– Merlin Chain’s Liquidity Protocol Guide
– TRON’s Bitcoin Layer2 Solution and Roadmap