BUSD Supply Collapse, Ordinal Ecosystem Boom, and More
7 Highlights from the World of Digital Assets
Amidst a market correction and concerns over BUSD, this week still saw exciting developments across a variety of crypto ecosystems.
In this issue:
BUSD supply collapses
Solidly forks continue to gain market share
BTC bridged to Avalanche as BTC.b surges
Ordinals ignites interest in building on Bitcoin
Arthur Hayes ponders what a 3X oil spike would do to crypto
Eigenlayer explained
Berachain airdrop alpha
BUSD Supply Collapses
The total BUSD in circulation has collapsed over the past 2 months. From $22B in December, this week BUSD supply dropped another 20% to $8.7B.
Interestingly, this week’s supply drop occurred almost entirely on Ethereum.
This recent drop comes amid increased concerns over stablecoin regulation and Coinbase’s announcement that they will delist BUSD. Of the remaining BUSD, nearly $7B is on Binance, according to DefiLlama’s CEX dashboard. The plus-side is that nothing seems to have broken so far, even with a 60% drop in BUSD supply.
Solidly Forks Continue to Gain Market Share
TVL on Solidly forks continued to surge this week, driven by increases on Thena and Solidly v2. In total, Solidly forks now hold over $800M of TVL, up from under $100M at the start of the year.
For comparison, DEXs hold $19B of TVL in total. Given how Solidly tokenomics work, the longer this upward momentum lasts, the longer I would expect it to continue.
BTC Bridged to Avalanche as BTC.b Surges
Avalanche’s version of wrapped Bitcoin, BTC.b, saw its supply jump by over 2,000 in a single day. Check out this dashboard of BTC.b stats by gfkacid.
The presence of a large amount of bridged BTC, acting productively in DeFi, is beginning to set apart Avalanche from other Ethereum competitors.
Ordinals Ignites Interest in Building on Bitcoin
Ordinals have lasted long enough that they can no longer be ignored. Redphone illustrates in this eye-opening thread how these are much bigger than simply “jpegs on Bitcoin”.
Ordinals can be used to store all sorts of data and applications on Bitcoin and we’re already seeing an ecosystem begin to flourish.
Related to this, Ordinals are sparking renewed interest in building more dapps on top of Bitcoin.
Arthur Hayes Ponders What a 3X Oil Spike Would Do to BTC
Arthur Hayes’ articles are always an interesting read. In this (lengthy) article, he explores what a 2-3X spike in the oil price overnight would do to BTC. Interesting thought experiment that delves into macro, geopolitics, and BTC’s place in the world.
EigenLayer Explained
Eigenlayer is one of the most anticipated launches in 2023. In this thread, 0xSalazar explains how EigenLayer enables ETH “re-staking” and how this will take the ETH ecosystem to the next level.
Berachain Airdrop Strategies
Berachain, the long-anticipated Cosmos EVM, appears to be launching soon. In this thread, Subli outlines strategies to become eligible for the Berachain airdrop.
That’s all for this week. For more frequent content, follow me on Twitter, YouTube, and Instagram.
Until next time,
Patrick Scott
Dynamo DeFi
Well done