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Shiba Inu Projected 348% Rise to $0.000081 Unaffected, Says Analyst

Elendu Benedict
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Shiba Inu Projected 348% Rise to $0.000081 Unaffected, Says Analyst

Crypto analyst Javon Marks has asserted that Shiba Inu’s quest to price close to its ATH remains on course despite the recent market downturn.

The broader crypto market saw a sideways start to the week after substantial bullishness in the previous week. For context, Bitcoin led a broader market recovery after surging over 8% last week. Shiba Inu caught the bullish momentum, appreciating 7.3% in the same timeframe.

However, the market has slumped this week, with Shiba Inu relinquishing most of its gains from the previous week. Amidst the recent price correction, analyst Javon Marks has insisted that the second-largest meme coin by market cap is still set for a 348% surge to $0.000081.

Analyst Says Price Uptick Still in Play

In an October 22 tweet, Marks asserted that Shiba Inu would still meet his price target near its all-time high following a structural breakout. For context, the market analyst noted earlier that SHIB has formed a hidden bullish divergence on the 6-day timeframe, signaling an impending price uptick.

Marks noted that multiple bullish patterns confirmed the breakout from the divergence structure, which he sees propelling Shiba Inu to $0.000081. Notably, SHIB will have to surge over 348% from its current price of $0.0000178 to meet the analyst’s price expectation.

Meanwhile, Javon Marks noted that although Shiba Inu has progressed slightly following the breakout, he expects the token to appreciate considerably from here on. The analyst also argued that SHIB’s sustained trend above the hidden bullish divergence breakout further confirms the impending bullish surge to a multi-year high.

Furthermore, Javon Marks termed Shiba Inu’s current consolidation “the early stages of a massive continuation.”

Shiba Inu Facing Major Resistance

Notably, Shiba Inu stalled close to the $0.00002 resistance on Monday, correcting over 8% since. The massive demand zone has been a significant impediment to Shiba Inu’s sustained uptrend, with multiple analysts stressing the market implication.

For instance, analyst SwallowPremium predicted that Shiba Inu would move southward from the resistance zone, targeting a 26.5% downtrend to $0.00001407. His analysis also emphasized the importance of the $0.00002 resistance, noting that it would determine SHIB’s next course of action.

However, Jack predicted a positive outlook for SHIB, arguing that the meme coin will surge past the resistance. The market commentator asserted a 51% surge to $0.000027 after defying the impediment.

Ethereum Vitalik Buterin Slams Michael Saylor’s Call for Bitcoin Custodianship via Banks, Calls It “Batshit Insane”

Lele Jima
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Ethereum Vitalik Buterin Slams Michael Saylor’s Call for Bitcoin Custodianship via Banks, Calls It “Batshit Insane”

Ethereum’s co-founder Vitalik Buterin criticizes MicroStrategy’s executive chairman Michael Saylor for recommending that Bitcoin enthusiasts surrender their BTC custody to big financial institutions.

Buterin is the latest crypto stakeholder criticizing Saylor for supporting Bitcoin custodianship through big banks rather than self-custody. Saylor made the suggestion on October 20 during an interview on Markets with Madison. 

It bears mentioning that Saylor had been an advocate of self-custody, a practice he believed would prevent large custodians from accumulating too much power. However, his recent support for custodianship through big financial institutions came as a shock to many, leading to heavy criticism.  

Ethereum Co-founder Criticizes Saylor 

In an X post today, Buterin referred to Saylor’s suggestion as “batshit insane.” The Ethereum co-founder accused Saylor of advocating for regulatory capture to protect crypto. 

He cited some comments from Saylor’s controversial speech, which suggests that entrusting Bitcoin custodianship to big financial institutions like BlackRock and Fidelity Investments could protect the industry, as most law enforcement agencies and lawmakers have stakes in those entities. 

In Saylor’s view, these regulators would ensure that these institutions are protected, which he believes could then extend to the crypto industry. 

Reacting, Buterin asserted that there are many examples of how this strategy would not yield the desired result. Furthermore, he emphasized that Saylor’s recommendation is against the core principles of crypto, which prioritizes decentralization and financial freedom. 

Other Crypto Stakeholders Criticize Saylor Recommendation 

Yesterday, Jameson Lopp, the co-founder of Bitcoin custody firm Casa, criticized Saylor’s initiative, highlighting four long-term negative ramifications to the proposal. 

He said convincing people to trust a third-party custodian could increase systemic risk, leading to asset seizure and loss. The Casa executive also stated that the move could disenfranchise many people from actively participating in governance. 

Furthermore, Lopp suggested that centralizing Bitcoin custodianship in big financial institutions could resist innovation. According to him, these institutions do not care about advanced cryptographic features. 

Lastly, the Casa co-founder said entrusting Bitcoin custodianship to big financial institutions would deprioritize permissionless scaling. 

ShapeShift founder Erik Voorhees said Saylor deserves the criticism he is getting from crypto enthusiasts. According to him, Bitcoin self-custody is the entire point, adding that most essential attributes of BTC emerge from this concept. 

ChatGPT Projects XRP Price if GOP Candidate Trump Wins the US Presidential Election

Sam Wisdom Raphael
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ChatGPT Projects XRP Price if GOP Candidate Trump Wins the US Presidential Election

AI chatbot ChatGPT has predicted a possible XRP price spike if Donald Trump wins the forthcoming U.S. presidential election.

With the November election merely a few weeks away, the crypto community has become more involved due to the possible effects the outcome of the polls could have on Bitcoin (BTC) and the crypto industry at large.

Significance of the US Presidential Election

For instance, several crypto-influenced Political Action Committees (PACs) have sprung up over the past few months to drum up support for either GOP candidate Donald Trump or Democratic nominee Kamala Harris. 

Notably, super PAC Future Forward USA is set to receive $10 million in XRP from Ripple Chairman Chris Larsen in support of Kamala Harris. In addition, Trump 47, a PAC looking to support Donald Trump’s presidential ambitions, has received $7.5 million in crypto donations from crypto leaders. 

This increased involvement in the forthcoming elections confirm how pivotal the crypto community views the next U.S. administration, and how the policies from such administration could impact the industry. 

Notably, the current Biden administration has been criticized as disastrous due to the lack of clarity for the crypto industry and enforcement actions from SEC Chair Gary Gensler. Some argue that this lack of clarity has stifled the growth of the industry in the U.S.

A classic instance is the legal battle between Ripple and the SEC, which has lasted for nearly four years. XRP, which has underperformed since it dropped from the $3.3 peak in January 2018, has faced price suppression, which some market commentators believe stems from the legal case.

ChatGPT Projects XRP Price if Trump Wins

Trump already leads Harris on Polymarket. Most crypto industry leaders believe a win for Trump, who has been more crypto friendly, could turn the tide for the entire industry, and XRP could gain from such a regulatory shift, potentially staging a rally. However, the extent of this rally remains unclear.

As a result, we recently asked OpenAI’s ChatGPT to predict what XRP price could be if it rallies on the back of a win for Donald Trump. In response, the chatbot confirmed that XRP price could actually surge if Trump wins and implements policies favorable to the crypto industry.

ChatGPT Predicts XRP Price
ChatGPT Predicts XRP Price

These policies could result in regulatory clarity and better adoption of cryptocurrencies. Should this occur, ChatGPT believes XRP price could soar to a price range of $1.50 to $2 months after Trump wins. However, this will depend on the market momentum and level of adoption.

Interestingly, the chatbot speculates that a wider bull market run could see XRP transcend the $2 mark. ChatGPT sees XRP reaching $3 or even higher, with a potential to reclaim the $3.8 peak if the bull run momentum prevails. XRP would need to rise by more than 600% to claim the $3.8 price.

A Whale Withdrew 32,695 Solana to Buy These Three Memecoins

Albert Brown
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A Whale Withdrew 32,695 Solana to Buy These Three Memecoins

Whale-driven selloffs have begun putting massive pressure on Solana (SOL), as funds shift to memecoins.

Solana’s price has been under pressure in the last 24 hours, partly fueled by whale-driven selloffs. This decline coincided with a shift of significant funds into memecoins. Market data indicates that whales have started liquidating SOL positions while actively buying into newer meme-based tokens. 

Large-Scale SOL Liquidations

For instance, a major whale transaction unfolded recently, beginning with the creation of a new wallet that withdrew 32,695 SOL—equivalent to $5.46 million—from Binance. Instead of holding SOL, this whale opted to channel most of these funds into memecoins. 

Specifically, the whale invested 18,000 SOL (worth $3 million) into purchasing 6.95 million GOAT tokens, with each token priced at $0.43. Furthermore, 11,750 SOL ($1.96 million) was converted into 31.71 million GIGA tokens at $0.062 per unit. 

Further, the investor used 2,900 SOL, worth around $484,000, to procure 1.98 million FWOG tokens at $0.24 each. 

The account now holds 44.93 SOL, valued at approximately $7,418.06, alongside 11 tokens with a significantly higher total value of about $6,367,080.

Solana’s Surging Liquidations

This trend of selling Solana is not isolated, particularly in recent weeks. In a separate report, Pump.fun, a platform facilitating memecoin launches on Solana, capitalized on current market conditions by selling 40,000 SOL. 

Pump.fun has accumulated a total of 969,945 SOL in fees, estimated at around $162 million. Notably, the platform has liquidated about 56% of its earnings, maintaining a strategy to periodically convert holdings to profits. 

Notably, it executed the latest sale at an average price of $156.40 per SOL, marking the transactions among the most lucrative of its kind on Kraken. The steady profit realization brings up concerns of a rise in supply. 

From Accumulation to Timely Exits

Elsewhere, data from October 21 reveals another significant whale activity, with the sale of 22,726 SOL worth $3.86 million. This whale’s trading behavior has typically featured buying SOL during low-price periods and selling at peaks. 

At the time of the report, the whale held 20,000 SOL, valued at $3.33 million, while cumulative profits from prior trades had exceeded $2.5 million. The trading history includes early uptrend accumulations between November and March, with initial purchases of 6,187 SOL, followed by smaller acquisitions of 3,399 and 259 SOL. 

Mid-year volatility spurred additional buys of 2,300 SOL at lower prices, followed by progressive selloffs as prices rebounded. 

XRP Ledger Attracts $1B Tokenized Equity and Debt Fund

Elendu Benedict
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XRP Ledger Attracts $1B Tokenized Equity and Debt Fund

The XRP Ledger has expanded its utility, especially in the real-world asset tokenization sector, following a collaboration between Zoniqx and Aurum Equity Partners.

On October 22, Aurum announced that it has launched a tokenized equity and debt fund worth $1 billion on the XRPL blockchain. The debut, which birthed the “world’s first combined equity and debt tokenized fund,” will facilitate easy accessibility to Aurum’s tokenized assets using the XRP Ledger.

XRPL Secures Major Tokenization Gig

The $1 billion fund will focus on investing in data centers on a global scale. Per the Tuesday press release, the venture will establish data centers in the Kingdom of Saudi Arabia, the United States, the United Arab Emirates, India, and Europe.

The announcement also involves another notable firm tipped to contribute uniquely to the initiative. For context, Aurum partnered with Zoniqx to provide tokenization asset lifecycle management (TALM) solutions and the dynamic complaint interoperable security token (DyCIST) protocol.

Essentially, Zoniqx will tokenize Aurum’s equity and debt assets, and XRP Ledger will provide a marketplace for prospective investors to access the tokenized funds. Aurum noted that XRP Ledger will provide the investors with “liquidity and diversification” as they invest in the first combined equity and debt tokenization instrument.

The recent move comes eight months after Zoniqx inked a tokenization-focused collaboration with Ripple. Notably, the Silicon Valley firm partnered with RippleX, the development arm of Ripple, in February to integrate multi-asset tokenization features on the XRP Ledger.

Ripple and XRP Ledger Big on RWA Tokenization

Notably, the latest development aligns with Ripple’s broader vision to become a key player in the nascent real-world asset tokenization sector. Market experts have speculated that the sector will grow into a trillion-dollar industry.

Ripple’s CLO Stuart Alderoty had earlier stated that asset tokenization was one of the three pillars the payment giant is looking to establish on its business chain. Notably, it extended its partnership with UK-based exchange Archax earlier this year to tokenize millions of RWAs on the XRPL.

Reacting to the Tuesday development, Ripple CTO David Schwartz stated that private equity tokenization was an emerging utility in the RWA sector.

He further noted that the use of the XRPL in the collaboration between Aurum and Zoniqx stresses that blockchain technology can play a major role in harnessing the potential that asset tokenization brings.

Meanwhile, the XRP Ledger is poised for enhanced liquidity and use case following the proximity to the highly anticipated launch of the RLUSD stablecoin. Ripple Lab president Monica Long noted that the fintech firm was awaiting regulatory approval before debuting the stablecoin.

Pundit Says Most Won’t Buy XRP Until It Reaches $5-$10

Abdulkarim Abdulwahab
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Pundit Says Most Won’t Buy XRP Until It Reaches $5-$10

Crypto commentator Jay Blessed argues that while XRP has been low-priced for years, presenting the investing public an opportunity to buy in cheaply, most people will not enter the market until XRP becomes more expensive.

Blessed’s commentary stemmed from the popular notion that most people remain indifferent about an asset during its initial stages of growth but will join once it is established and successful.

Applying this to XRP, the seventh-largest cryptocurrency, which has remained under $1 for three years, Blessed remarked that many investors find buying XRP at its current price of around $0.52 unattractive. However, he believes interest will surge when the altcoin later reaches a value between $5 and $10.

Joining XRP at $5 to $10

At that time, investors may be driven by fear of missing out, viewing the appreciating value as confirmation of further growth potential. For context, with XRP currently trading at $0.529, reaching $5 would represent a substantial 845% increase from current levels. The $10 mark would be even more significant, translating to a 1,790% gain from its initial point.

However, history confirms that entering a cryptocurrency market during periods of heightened enthusiasm has often put investors at risk of minimal gains and greater financial losses. For instance, market participants who bought XRP after it reached $3 in 2018 are still nursing over 80% losses six years later.

Is Entering the XRP Market Between $5 to $10 Late or Optimal According to Experts?

Meanwhile, some market pundits argue that even a price point of $5 to $10 could be considered conservative for XRP’s potential peak in this cycle, suggesting that entry at that level may not be late.

For instance, BarriC, a notable commentator in the XRP community, believes that XRP will be viewed as cheap again in a few years when it reaches the $10 to $15 range.

On the other hand, some analysts are critical of the prevailing optimism about XRP’s future. Market psychologist Michael XBT has predicted that $2 is the peak value for XRP in this cycle. He describes forecasts of a 300x surge as “delusional” and warns that those aiming for targets beyond $2 risk becoming exit liquidity for more savvy investors.

Former SEC Lawyer Clarifies This Latest Filing in Ripple Case Has No Connection to Alleged Late SEC Filing

Lele Jima
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Former SEC Lawyer Clarifies This Latest Filing in Ripple Case Has No Connection to Alleged Late SEC Filing

Marc Fagel, a former securities lawyer and former SEC official, provides insight into a recent filing submitted in the Ripple lawsuit. 

In a startling development, the United States Court of Appeals for the Second Circuit filed an “Acknowledgment and Notice of Appearance Default Notice” in the SEC v. Ripple docket. 

Popular XRP community figure Sherrie shared the filing on X yesterday. 

Second Circuit Notice Triggers Speculation in XRP Community

Per the filing, the Second Circuit emphasized that the appellee’s counsel failed to submit its notice of appearance on the October 18 deadline in accordance with the court’s rules.  

The court warned that failure to file the appearance acknowledgment within 14 days of the notice might prevent the appellee’s legal counsel from presenting oral arguments unless special permission is granted. 

Since the Second Circuit submitted the notice, some XRP proponents speculated that the notice was directed at the SEC. They suggested that if the regulator fails to comply with the directive, the Second Circuit might dismiss its appeal. 

Notice Involves Ripple Co-founder 

As this speculation gains momentum, Fagel provided clarity to the filing, emphasizing that it does not concern the SEC. According to him, the filing was directed at Ripple co-founder and chairman Chris Larsen, who was included as one of the appellees in the case. 

Fagel indicated that Larsen’s legal counsel is yet to file their appearance notice in the case. Hence, the Second Circuit issued a 14-day extension for their compliance.

 

However, if his counsel fails to submit their appearance on or before November 5, they risk being prevented from presenting oral arguments. 

Ripple to File Form C This Week 

In the meantime, the broader crypto community is anticipating Ripple’s Form C filing. Recall that the crypto payments company filed a cross-appeal notice on October 10, indicating plans to also challenge the district court’s ruling on its institutional sales of XRP, which were deemed investment contracts. 

Shortly after the SEC filed its Form C last week, Ripple’s CLO Stuart Alderoty disclosed that the company would submit its pre-argument this week. For context, the filing is due on Friday, October 25, 2024. 

Notably, Ripple is expected to make pre-arguments regarding why it believes Judge Analisa Torres erred in her institutional sales decision. Afterward, the parties will agree on when to submit their respective appeal briefs. 

According to Alderoty, the Second Circuit might give the SEC 90 days to file its opening brief. The Ripple CLO speculated that the briefing schedule might end in July 2025. 

Potential XRP Uptrend to $40 as Pundit Outlines Technical and Fundamental Factors Pointing to XRP Rise

Sam Wisdom Raphael
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Potential XRP Uptrend to $40 as Pundit Outlines Technical and Fundamental Factors Pointing to XRP Rise

Steph, a crypto market commentator, recently shared an analysis on X (formerly Twitter), predicting a major price surge for XRP.

His video outlined several technical and fundamental factors that support a strong, bullish outlook for the altcoin. According to Steph, XRP could potentially reach $40, though he advises viewers to approach this target with caution.

Technical Indicators Suggest a Major XRP Breakout

In the analysis, Steph pointed to important technical indicators that suggest an imminent breakout for XRP. He highlighted a symmetrical triangle pattern that has been forming in the XRP/USD chart since 2018. Several market analysts have identified this pattern.

XRP 1M Symmetrical Triangle Steph
XRP 1M Symmetrical Triangle | Steph

Notably, XRP is currently at the apex of this triangle. This marks a point at which a breakout could occur. The setup resembles a pattern the market witnessed in 2017, which led to a significant price increase for XRP. This rally culminated in the $3.31 all-time high.

Steph believes that XRP’s price has faced suppression for years, especially in the wake of regulatory challenges, including the ongoing case between Ripple and the U.S. SEC. However, despite this suppression, he stressed that XRP might be gearing up for a massive price movement.

Comparing XRP’s performance to Bitcoin (BTC), Steph noted that XRP is massively undervalued against BTC. He recalled a period in 2021 when XRP outperformed Bitcoin by over 460% within a few months. According to the analyst, a similar or even more dramatic rally could be on the horizon.

XRPBTC 1M Chart Steph
XRPBTC 1M Chart | Steph

Market Fundamentals Remain Strong

Besides the technical charts, Steph highlighted several fundamental reasons for remaining optimistic about XRP’s future. 

He mentioned that major institutions, including banks, have continued to partner with Ripple. These partnerships could indicate XRP’s potential role in the broader financial system, especially as CBDCs become more prominent.

One of the more bullish developments he mentioned is Canary Capital’s recent filing for an XRP exchange-traded fund (ETF). The move followed an earlier filing by Bitwise for a similar product, confirming institutional interest in XRP.

Additionally, Steph discussed the broader crypto market, noting that cryptocurrencies like XRP could benefit from macroeconomic factors. 

He pointed out that as global liquidity increases and central banks shift towards more accommodative monetary policies, risk-on assets such as cryptocurrencies are likely to see growing demand. 

The weakening U.S. dollar and declining Bitcoin exchange reserves also indicate that large players are positioning themselves for a bullish phase in the market.

Caution on XRP Price Targets

Despite his confidence in XRP’s potential to break out in the near future, Steph urged the investing public to approach price targets cautiously. In his analysis, he mentioned that the $40 target for XRP is not guaranteed. 

According to Steph, a more conservative target could be between $5 and $10, although higher prices are possible depending on market conditions.

He advised investors to lock in profits along the way rather than waiting for an exact price target, given the unpredictable nature of the market. While he does not expect XRP to reach $40 within the year, he believes in the possibility of a new all-time high by the end of 2024.

Here’s What Would Drive XRP New Massive Move, According to Expert

Abdulkarim Abdulwahab
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Here’s What Would Drive XRP New Massive Move, According to Expert

Versan Aljarrah, the founder of Black Swan Capitalist, has taken to X with bold predictions about the upcoming trajectory for XRP.

As of today, XRP trades for $0.5481, maintaining the same price range it held a week ago. Additionally, XRP has declined by 6% from its value a month ago and has dropped by 10% over the past 60 days. In contrast, Bitcoin has seen an increase of 12% during the same period.

Amid the discouraging performance, XRP proponents continue to speculate about the factors that could trigger a surge in XRP’s price.

What Could Drive XRP’s Next Move

According to Aljarrah, XRP is poised to experience a significant surge driven by a looming supply shock. This forecast suggests that the current circulating supply of XRP, which stands at 56.71 billion tokens, would be inadequate to meet the anticipated demand, particularly as buying pressure from affluent investors increases.

Aljarrah emphasized that this situation may arise as struggling institutions scramble to secure liquidity amid a weakening U.S. dollar. He believes that XRP will transition from being viewed as a speculative asset to a necessity for stabilizing currencies and economies, as well as managing global debt.

Essentially, Aljarrah argues that as institutions look for alternative solutions to stabilize their operations, demand for XRP could rise, potentially igniting a fresh rally in its price. This prediction aligns with broader sentiments within the community regarding the utility of XRP in cross-border payments and liquidity management.

Earlier this month, analyst Levi Rietveld also posited that a supply shock could send XRP’s price as high as $60, which he argues could happen “overnight.” He theorized a scenario where XRP captures a fraction of SWIFT’s global payment network.

Rietveld argued that this scenario would require institutions to purchase XRP massively. Now, given the locked tokens in escrow, the available supply would be inadequate, creating a “supply shock” that drives prices higher.

In August, Aljarrah also made bold statements suggesting that owning XRP would allow holders to claim a portion of the “global money supply,” especially if the XRP Ledger becomes the primary platform for tokenizing economic assets.

Bitcoin’s DeFi Revolution Is Ushering In A New Era For Crypto

Albert Brown
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Bitcoin’s DeFi Revolution Is Ushering In A New Era For Crypto

Over the last 15 years, Bitcoin has come to be known as “digital gold”, earning a thoroughly deserved reputation as an alternative store of value. But its potential goes well beyond that, and developments over the last few years have ignited a new wave of innovation around the world’s oldest cryptocurrency.

The DeFi revolution, which first emerged thanks to Ethereum’s smart contracts, is finally coming to Bitcoin, where it can leverage over $1.2 trillion in largely idle capital and the unrivaled security of the original blockchain. These two advantages alone make Bitcoin DeFi a no-brainer, and it is already making its mark on the crypto world with the birth of hundreds of exciting new projects, including Bitcoin-based DEXs like Velar Dharma, Bitcoin-focused lending protocols such as Sovryn and native Bitcoin wallets like Xverse.

Bitcoin’s Transformation

Until recently, DeFi on Bitcoin simply wasn’t possible. The infrastructure required to build decentralized financial applications atop of Bitcoin’s blockchain just wasn’t there. That’s why DeFi flourished on Ethereum and later, other blockchains like Solana and Avalanche. The idea of creating a similar ecosystem on Bitcoin was largely dismissed, as its blockchain was seen as too rigid and, crucially, it wasn’t able to support the smart contracts needed to facilitate the wide-ranging functionality of DeFi applications.

But the Bitcoin of old is no longer the Bitcoin of today. Starting with the introduction of Segregated Witness in 2017, it has evolved into a very different beast. SegWit did two key things: it helped to mitigate some of Bitcoin’s data limitations, and more importantly, it enabled the creation of so-called “Layer-2 networks”, such as Stacks, Rootstock and the Lightning Network. With L2s, Bitcoin users are able to process transactions off-chain, increasing speed and reducing costs before ultimately settling them on the super-secure Bitcoin blockchain.

The next important milestone in Bitcoin’s evolution was the Taproot upgrade. Rolled out in November 2021, it paved the way for Bitcoin to support more complicated transactions and later, the creation of Bitcoin-native smart contracts and dApps. In a 2024 study, Coinmarketcap (CMC) Research and Footprint Analytics discussed how Taproot transforms Bitcoin into something far more powerful.

“Through Merklized Alternative Script Trees (MAST), Taproot condenses complex transactions into a single hash, reducing transaction fees and minimizing memory usage,” it says in the report. “While not a DeFi solution itself, the Taproot upgrade improved Bitcoin’s smart contract capabilities, making it easier and more efficient to implement complex transactions and laying a foundation for future DeFi developments.”

It was because of Taproot that the Bitcoin developer Casey Rodamor was able to create the Ordinals and Runes protocols that revolutionized the utility of Bitcoin. Introduced in 2023, Ordinals makes it possible to “inscribe” data such as an image or document onto a single satoshi, the smallest unit of Bitcoin, effectively transforming them into non-fungible tokens or NFTs that live on the Bitcoin network.

Meanwhile, Runes enabled the creation of fungible tokens, equivalent to the ERC-20 tokens that live on Ethereum, giving rise to alternative, Bitcoin-based cryptocurrencies such as the Pepe memecoin and the Liquid Tether (L-USDT) and Sovryn Dollar (DLLR) stablecoins. Rodarmor’s efforts were quickly followed by the introduction of the BRC-20 standard, introduced by an anonymous developer called Domo, in March 2023.

Bitcoin DeFi Takes Off

The above developments unleashed a wave of innovation on the Bitcoin network, and the resulting DeFi ecosystem has become one of the fastest-growing segments in the crypto market, with over $560 million in total value locked as of October 2024. Developers are striving to recreate the same kind of ecosystem that exists on Ethereum, driven by the desire to tap into the enormous value locked in Bitcoin, which accounts for more than 54% of the total capital in the crypto industry.

With the existence of a framework to follow in the shape of Ethereum’s DeFi space, developers have largely skipped the experimentation phase. Already, hundreds of Bitcoin-native dApps have launched, spanning everything from DEXs, stablecoins and NFTs, to lending and borrowing markets and “real-world assets”.

Velar itself has emerged as one of the biggest players in Bitcoin’s ecosystem. It has built a comprehensive decentralized exchange platform that enables seamless, low-cost swaps of Bitcoin-based tokens. Notably, it pioneered the very first perpetual DEX platform on Bitcoin, and provides a way for BTC holders to put their capital to work, providing liquidity in return for a share of the platform’s transaction fees. In September alone, Velar claimed the title for the highest number of active users (28%) on the Stacks ecosystem. Finally, Bitcoin users can do more than just “hodl” their assets.

Peter Watson, Chief Marketing Officer of Velar, believes that their commitment to the community is how they are able to create real value and claim the position as the number one protocol on the Stacks Network. He says “what sets us apart is that our core team comes from the community itself. We’ve been in their shoes, understand their challenges, and share the same vision for the ecosystem. This unique perspective drives us to build with purpose and precision. Everything we create is for the long-term benefit of the community, making sure that the ecosystem not only thrives but evolves in ways that matter.”

Other well-known dApps in the Bitcoin ecosystem include Sovryn, a DeFi protocol hosted on Rootstock that enables token swaps, lending, borrowing and staking, and Gamma, which has emerged as the largest marketplace for Ordinals and Bitcoin-based NFTs issued on the Stacks network.

In addition, the Bitcoin ecosystem now boasts innovative wallets such as Xverse, which is designed to provide a user-friendly interface for interacting with Bitcoin’s nascent ecosystem. It gives users the ability to swap digital assets directly within the wallet, so they can buy meme coins, Ordinals and NFTs, stake their tokens and more.

Accelerating DeFi Adoption

The above dApps all look and feel much like their Ethereum-based counterparts and their fast-growing popularity shows how Bitcoin DeFi is primed for success. They also help to explain the sudden surge of institutional interest in Bitcoin, which helped to drive massive gains in BTC’s value earlier this year.

Although some Bitcoin maximalists and degens are still less than enthusiastic about the idea of traditional financial institutions getting involved in crypto, the enormous capital within TradFi will do much to accelerate Bitcoin’s mainstream adoption.

Bitcoin DeFi opens the floodgates to a word of opportunity, but it still faces many of the same challenges that have limited its adoption on Ethereum and other blockchains. One of the major ones is the user experience. For instance, onboarding into crypto, and especially DeFi, remains a daunting experience for many new investors. Fortunately, Bitcoin developers are starting to focus their energies on accessibility, breaking down the barriers to adoption.

For instance, the recent partnership between Velar Dharma and Xverse provides a more seamless way for users to explore the Bitcoin ecosystem. With Xverse, users can now swap their BTC for numerous Bitcoin assets, directly within the wallet, including stablecoins, meme coins and utility tokens, with more than 60 trading pairs available at launch. The wallet utilizes Dharma’s multi-hop technology to enable swaps instantaneously, in close to real-time. So anyone holding BTC has an easy way to access Bitcoin’s growing stable of digital assets.

More Than Digital Gold

As more capital is sucked into the Bitcoin DeFi ecosystem, it’s giving entrepreneurs greater runway to fund and explore their innovative ideas. One of the most eagerly anticipated changes is the Nakamoto upgrade on Stacks, which is designed to increase transaction throughput with enhanced finality guarantees, and should further cement Bitcoin’s status as a reliable DeFi protocol.

“The expansion of the Bitcoin ecosystem proves that Bitcoin can be so much more than just digital gold and a store of value,” Thakore stated. “Bitcoin can power DeFi, it can power NFTs and it can serve as the cornerstone of many other emerging decentralized applications.

Bitcoin’s evolution will naturally have major implications for the wider DeFi industry too. If DeFi is to achieve its goal of widespread adoption, it needs to be built on a strong foundation. And there’s nothing that can compare to the industry-leading security, the vast liquidity and the mainstream appeal that Bitcoin already has.

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