BTCFi Ecosystem Rise Analysis: The Key to Asset Deposition Strategy

Background

The flow of BTC assets on the chain can be divided into three layers:

1. Native BTC
2. Wrapped BTC, mapped assets and liquidity staking BTC
3. BTC derivative assets in downstream DeFi scenarios

Currently, centralized wrapped BTC still occupies over 75% of the dominant position in the BTC pegged asset market. However, BTC LST( such as LBTC and SolvBTC.BBN) have been rising rapidly recently, with a market size reaching 25.6K BTC, becoming an emerging force. The BTC liquid staking and points derivative market are becoming new growth points in the BTCFi field.

Asset Accumulation Strategy of the BTCFi Ecosystem

Core: Focus on the dual-drive of incremental assets and token incentives

Core is a BTC-driven L1 scaling solution that provides robust returns to users through non-custodial staking and dual staking mechanisms. Its TVL has risen by 4757.9% within six months, reaching $591.5M. The main growth strategies include:

1. Focus on the incremental market of BTC anchored assets, absorbing the rapidly rising BTC LST assets.
2. Build supporting native protocols and quickly integrate the BTCFi project to establish a complete ecological application.
3. Utilize $CORE token airdrops and market performance to support the incentive structure.

Corn: The points derivative gameplay efficiently attracts BTC LST liquidity.

Corn is an emerging ETH L2 network, currently with a cumulative TVL of $425.9M. Its rapid rise is attributed to:

1. Launched BTC LST points derivatives gameplay in collaboration with Pendle, capturing 11.4% of the BTC LST market share.
2. Attract initial liquidity through Kernel integration incentives

BOB: Secure bridging and a strong ecosystem help to consolidate assets

BOB is a hybrid L2 network combining BTC and ETH, with a TVL of $65.7M. Its performance is mainly attributed to:

1. Trust-minimized bridging architecture opens up multi-network asset channels, addressing the issue of liquidity fragmentation.
2. One-click liquidity staking entry and complete ecological applications, providing convenient staking entry and application scenarios.

Summary

The key to effectively achieving ecological fund accumulation lies in:

1. Connect and incentivize large-scale incremental anchored assets
2. Forming composable yield strategies through diversified DeFi applications
3. Provide multi-party incentive expectations

Currently, the TVL of BTC-backed assets on L2 and sidechains is about 1.6 billion USD, accounting for only 0.14% of BTC's total market value. In the future, as BTC liquidity is gradually released, the BTCFi ecosystem still has enormous rise potential.