Over the recent period, one by one, crypto categories have recorded growth. With the launch of Damus in the Bitcoin ecosystem, a host of applications have emerged, drawing investors’ attention back to the No.1 crypto.
As the pioneer of the crypto world, Bitcoin has always had a dominant market share, which is regarded by many investors as a major bull/bear indicator. After all, Bitcoin, safer than other crypto assets, is the favorite choice of Wall Street when traditional financial investors join the crypto world.
During the last bullish cycle, the BTC price skyrocketed to $60,000, largely thanks to the support of traditional capital institutions. For the crypto space, which is gradually picking up, the performance of the Bitcoin ecosystem is crucial to the overall trend of the market. So without further ado, let’s dive into the Bitcoin ecosystem.
The revival of the Bitcoin ecosystem begins with Damus, a social app that went viral in January 2023. The app is known as the blockchain version of Twitter, and its founders stated that they would not issue any coins and would instead use Bitcoin for payments during its future development. Since then, as the number of BTC nodes started to grow, the download volume of related Lightning Network apps has also skyrocketed. However, the emergence of trending categories such as AI, LSD, and ARB, coupled with Damus’s mediocre profitability, led to a decline in its popularity.
Following the launch of Damus, many project teams shifted their focus to the trending NFT market and launched multiple NFT projects, including the Ordinals protocol. In late January, the project rolled out 10,000 Punks on the Bitcoin mainnet. On the launch day, the average price of a Punk ranged from 50 USDT to 60 USDT. After Punks were sold out, the floor price rose to 4 bitcoins.
Now that Ordinals has introduced PUNKs, it must also address the issue of poor liquidity associated with NFTs. As such, the Bitcoin community introduced Ordyswap, a platform specifically designed for trading Ordinal NFTs on the Bitcoin network, and the platform’s founder announced that STX would be used as its token.
Many are curious about the background of STX. Simply put, STX is the native token of Blockstack, a project in the Bitcoin ecosystem. According to the team, unlike Ethereum-based projects, Blockstack features PoX mining.
Some may find this explanation dubious and wonder if Blockstack is a scam, but the project is actually backed by strong compliance and technical capacity, as well as first-class investors.
To start with, Blockstack is the first blockchain project that meets SEC regulatory standards. Second, the project is extremely innovative with respect to consensus mechanisms and has proposed Proof of Burn and Tunable Proof of Work. Lastly, Blockstack has raised funds from many prestigious institutional investors, including Union Square Ventures, Winklevoss Capital, Y Combinator, DCG, Lux Capital, ZhenFund, Huobi Capital, and HashKey. This indicates that the project has earned the recognition of both crypto and conventional investors.
On top of the Blockstack protocol, two DeFi projects have emerged in the Bitcoin ecosystem: ALEX, a top-tier DEX, and Arkadiko, which has already released its stablecoin.
Apart from them, the Bitcoin ecosystem also features RSK and Liquid, but given their weak performance, we will only talk about the two projects briefly. RSK is a Bitcoin sidechain offering two DeFi projects built on top of the protocol: Sovryn and Money on Chain. Liquid is also a BTC sidechain, but it has remained obscure due to its slow progress and the lack of public data.
Now that we’ve introduced some of the most prominent Bitcoin projects, let’s talk about the crypto itself. Over the past decade, Bitcoin has been a symbol of the crypto market for conventional investors and a key target for crypto investors. It remains to be seen, however, whether Bitcoin can break free from its label as a store of value and forge a new path.
What is certain is that, like the blockchain industry, the Bitcoin ecosystem is still in its infancy and will bring more exciting products and technologies in the future. By then, both Bitcoin and the whole crypto market will see exponential growth.
According to data from the world-renowned crypto exchange CoinEx, as of this writing, the STX price stands at $0.7614, with a 24-hour growth of 25.17%.
As a global crypto exchange that has been running for over 5 years, CoinEx has always put users first. Over the last 5 years, through strict screening procedures, the exchange has listed 600+ cryptos and 1,000+ trading pairs that cover categories including NFTFi, AI, Arbitrum Native, and ZK, which fully meet the needs of most traders.
Apart from that, CoinEx offers a wide range of professional services, spanning spot trading, futures trading, margin trading, AMM, crypto finance, and CoinEx Dock. Thanks to easy trading procedures and satisfying services, the exchange has earned the recognition of over 4 million users across more than 200 countries and regions worldwide. Noted for its reliability, CoinEx is undoubtedly an exceptional platform in today’s crypto market.
Disclaimer: No investment advice is provided in this article, and all data mentioned herein are for reference only. You should not rely on the information provided herein to make any investment decision, and you will be fully liable for your own investment decisions.
