⚡Is the Market Sleeping on Bitcoin DeFi?
Plus points programs, Sei usage surges, and more.
The Dynamo DeFi newsletter covers trends, on-chain analysis and tools in crypto each week. Be sure to also check out my YouTube for more regular content.
📈Trends and Narratives
Is the Market Sleeping on Bitcoin DeFi?
DeFi on Bitcoin is perhaps the most obvious play that the crypto market is largely missing.
As of the time I’m writing this, BTC’s market cap is over $900 Billion. If only 1% of that entered DeFi, Bitcoin DeFi would be the second largest DeFi ecosystem, after only Ethereum. If 10% of that entered DeFi, Bitcoin DeFi would surpass Ethereum itself.
While, in the past technical limitations limited the prevalence of Bitcoin DeFi, new upgrades to ThorChain, the emergence of Ordinals, and Stacks’ upcoming Nakamoto Upgrade, make a full-fledged Bitcoin DeFi ecosystem possible now.
Dan Held predicts that this could be a much hated rally this year:
THORChain suggests that the ability to swap, earn yield on, and borrow against native BTC through THORChain could play a role in this. As noted in this newsletter in the past, if THORChain hit escape velocity for BTC-ETH spot volume, its high yield could attract enough liquidity that it becomes impossible to supplant.
Stacks is the most well-known Bitcoin Layer 2. What’s more? Several of its top applications currently don’t have tokens, making them ideal candidates for future airdrops.
BRC-20s, another component of the Bitcoin ecosystem, have already been among the best performing assets of the past month.
If the Bitcoin ETF is approved, as looks increasingly likely, Bitcoin and its entire ecosystem could outperform the rest of the crypto market.
The Year of the Points Programs
Airdrop and points programs have been all the rage recently and seem to have largely replaced yield farming as the main tool of DeFi enthusiasts. This is a natural response to most yield farms of 2021 resulting in the reward token being dumped to zero, hurting both the protocol and anyone who invested in them.
This thread by CoinBeats, a new educational company I founded, outlines 45 potential airdrops, with active points programs highlighted:
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🔢On-Chain Analysis
Manta TVL Breaks into Top 10
Manta, a highly anticipated modular L2 jumped into the top 10 chains by TVL as the cutoff for farming their token concluded:
Manta’s rapid ascent and ability to place among the largest chains so quickly is a sign of how quickly things can change in the DeFi industry.
Sei Usage Hits an All-Time High
Sei Network, the network notable for its high throughput, low transaction finality, and upcoming parallelized EVM, hit an all-time high in both transactions and users this week.
🛠️Tool Spotlight
Never Miss a Cosmos Airdrop with Airdrops One
Stakers in the Cosmos ecosystem have received a plethora of airdrops recently. And there have already been several announced in 2024. However, a lot of these airdrops have expiration dates. If you’re staking in Cosmos, use Airdrops One to keep on top of all of the latest airdrops.
📅Key Events This Week
That’s all for this week. For more frequent content, follow me on Twitter and YouTube.
Until next time,
Patrick Scott
Dynamo DeFi