With the re-emergence of the BRC-20 concept coin 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 author hmalviya9’s tweet, is compiled, organized, and written by BlockBeats.
Table of Contents
What is BRCFi?
BRC20 Summer
EVM Coins
BRC20 Winter
Key Moment
Multibridge
Bitstable
BRCFi IDOs
Associated Risks
BRC20 tokens are experiencing a general increase in value, and Multibridge intends to build an entire DeFi ecosystem around it to push BRC20 towards the mainstream, known as BRCFi. Cryptocurrency researcher @hmalviya9 analyzes this new concept in a tweet and lists several BRCFi projects that he sees potential in.
BRCFi is becoming a highly anticipated story in this bull market cycle, and most people may not have heard of it before.
Many tokens in this story may see returns of 100 times their value.
What is BRCFi?
As created by Multibridge, BRCFi is a DeFi ecosystem powered by BRC20 tokens. The naming is quite interesting.
As stated in their documentation, Multibridge aims to push BRC20 towards the mainstream by building an entire DeFi ecosystem around it.
BRC20 Summer
In the summer of this year, we witnessed the first wave of BRC20 tokens, which saw the emergence of a large number of “meme coins.” Minting these tokens was very simple, and as a result, enthusiastic investors went on a minting frenzy, causing the Bitcoin network to be congested within a few days.
During the BRC20 summer, tokens like ORDI and SATS were launched. The BRC20 hype lasted for a few weeks, and then people suddenly stopped talking about them. Meanwhile, some Ethereum developers found a way to mint on Ethereum and other EVM chains.
Additional Reading:
BRC-20 Craze: Bitcoin Transaction Fees Soar 1000% as BTC NFT Trading Volume Surpasses Ethereum’s
EVM Coins
A young Indian builder, @mrphygital, smelled the opportunity and created a marketplace called Evmink for minting and trading EVM coins. Evmink has become the most popular place for minting and trading coins on Polygon, Avalanche, and BNB Chain.
BRC20 Winter
When Elon Musk pointed out that most NFTs are not on-chain, Ordinals gained attention again. Ordinals received a new narrative, and people started buying Ordinals again, with funds 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 value grew from $100 million to $1 billion. Other CEXs are now also showing great interest in listing BRC20 tokens.
Additional Reading:
$ORDI Surpasses $50 and Market Cap Reaches $1 Billion, Becoming the 60th Largest Cryptocurrency
Key Moment
We all know that BRC20 tokens cannot survive solely as meme tokens; they need utility and support from the entire ecosystem. While the Bitcoin community has some excellent developers, adoption is still primarily on the Ethereum chain, so BRC20 needs a bridge.
Multibridge
Multibridge has built this bridge, enabling cross-chain transactions between BRC20 and ERC20 tokens. It allows for easy transfer of BRC20 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 over-collateralized stablecoin for BRC20 tokens.
Within less than a month, Multibridge has recorded over $279 million in bridge transaction volume, making it the third most widely used third-party bridge in the past 30 days. The price of Multibridge’s native token, MUBI, has also increased 28 times from its IDO price.
Bitstable
Bitstable has also gone 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 increased 64 times from its IDO price.
Now, you must be wondering about two things: besides these two projects, what other potential projects are there, and where are the IDOs for 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 previous bull market cycle, it was a popular Ethereum-based IDO launch platform. So now, they have transformed into a launch platform for BRCFi tokens.
To participate in future transactions, you will need to stake AUCTION, DAII, or other required tokens.
Associated Risks
Currently, BRCFi is in a very high-risk category. Most teams building BRCFi projects are anonymous, so many of these projects may face “rug pulls.” Additionally, most projects have not undergone security audits, so there is a risk of being hacked.
Related Reports:
Bitcoin “Block Pause” for Over 90 Minutes, Miner Fees Surge, BRC-20 Paralyzes BTC Network?
Bitcoin EVM Coins Sentenced to Death? Core Developer Taunts: Bugs Will Be Fixed Next Year, BRC-20 Will Disappear!
BRC-20 Continues to Heat Up: SATS Spot Trading Listed on Binance, Surging 81% Within an Hour
Tags:
BRC-20
BRCFi
BTC
BTC ecosystem
Defi