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Opportunities and risks, exploring the new “BRCFi” narrative

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Many of the coins in this story could have 100x returns

Original author: @hmalviya9

Original translation: Luccy, BlockBeats

Editor's note:

BRC20 tokens are rising across the board, and Multibridge intends to build an entire DeFi ecosystem around it to promote BRC20 as the mainstream, namely BRCFi. Cryptocurrency researcher @hmalviya9 analyzed this new concept in a tweet and listed several BRCFi projects he likes. BlockBeats translated the original article as follows:

BRCFi is becoming a highly anticipated story in this bull market cycle, and most people may not have heard of this name before.

Many of the tokens in this story may have a return of 100 times.

What is BRCFi?

Just as Multibridge created, BRCFi is a DeFi ecosystem powered by BRC20 tokens. This is a rather interesting name.

As stated in Multibridge's documentation, their goal is to promote BRC20 as the mainstream by building an entire DeFi ecosystem around it.

BRC20 Summer

In the summer of this year, we welcomed the first wave of BRC20 tokens, which saw a surge of "meme coins". Minting these tokens was very simple, so the fervent investors went crazy minting them, causing the Bitcoin network to be congested in just a few days.

During the BRC20 summer, tokens such as ORDI and SATS were launched one after another. The BRC20 craze lasted for several weeks, and then people suddenly stopped talking about them. Meanwhile, some Ethereum developers also found ways to engrave on Ethereum and other EVM chains.

EVM Inscription

A young Indian builder @mrphygital sniffed out this huge opportunity and created a marketplace called Evmink for casting and trading EVM inscriptions. Evmink has become the most popular place for casting and trading inscriptions on Polygon, Avalanche, and BNB Chain.

BRC20 Winter

When Elon Musk pointed out that most NFTs are not on-chain, Ordinals once again caught attention. Ordinals gained a new narrative, and people started buying Ordinals again, with funds flowing into BRC20 tokens.

Some of the oldest BRC20 tokens, especially ORDI, have attracted 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.

Key Moment

We all know that BRC20 tokens cannot survive solely on the basis of memes. They need practicality and support from the entire ecosystem. The Bitcoin community has some excellent developers, but adoption is still mainly on the Ethereum chain, so BRC20 needs a bridge.

Multibridge

Multibridge has established this bridge, enabling cross-chain transactions between BRC20 and ERC20 tokens. It allows for easy transfer of BRC20 between two major chains.

Multibridge has sparked a wave of the entire DeFi ecosystem surrounding BRC20. Now we have some projects, such as Bitstable, that are building a decentralized CDP protocol similar to MakerDAO. They have issued DAII, an over-collateralized stablecoin for BRC20 tokens.

Multibridge has recorded over $279 million in bridge transaction volume in less than a month, making it the third most 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 become crazy in terms of trading volume and price action. In less than two weeks, Bitstable's total locked value (TVL) has exceeded $10 million, and the price of BSSB has increased 64 times from its IDO price.

Now you must be thinking of two questions: what are the other potential projects besides these two, and where will the IDO of BRCFi project take place.

I will reveal some promising BRCFi projects:

· Cross-chain bridge: @OrdiZK, @OrdBridge

· Money Market: @dova_protocol

· Aggregator: @NxHub_io

· Launch platform: @Turtsat, @bounce_finance

BRCFi IDOs

Everyone knows about Bounce, right? In the past bull market cycle, it was a very popular IDO launch platform based on Ethereum. So now, they have transformed into a launch platform for the BRCFi token.

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