Research Summary
The report discusses the rise of TAO token, the growth of Bitcoin DeFi, and the surge in on-chain derivatives volume. It also highlights the potential of NFT lending and provides a list of upcoming token unlocks, launches, and conferences.
Key Takeaways
TAO Token’s Rise
- TAO Token’s Market Position: TAO token, associated with Bittensor, has reached the top 25 coins by market cap, hovering around $650. It is gaining attention as the crypto x AI investment of choice.
- TAO’s Ecosystem Growth: TAO’s subnet architecture is developing, with projects starting to build within the ecosystem. As the ecosystem grows, more projects looking to add or utilize AI models will be incentivized to join.
Bitcoin DeFi’s Growth
- Bitcoin DeFi Ecosystem: The Bitcoin DeFi ecosystem is heating up, with ThorChain being the most popular DEX & cross-chain bridge, growing 30% in TVL over the last month. New Bitcoin Layer 2 protocols like B^2 Network and Merlin Chain have attracted $1.3B TVL in a short time.
- Bitcoin’s Potential in DeFi: The report suggests that only a small percentage of BTC needs to enter DeFi for Bitcoin to become one of the largest DeFi ecosystems.
On-Chain Derivatives Volume
- Record High Volume: On-chain derivatives volume hit a new all-time high this week, crossing $40B for the first time ever, indicating growth in the on-chain trading ecosystem.
NFT Lending
- NFT Lending’s Potential: NFT Lending stood out as a breakout category this week, rising to over $270M in TVL. It turns NFTs into yield-bearing assets, unlocks NFTs bought for speculation for use as utility, and allows NFT-holders to unlock liquidity without selling.
Actionable Insights
- Understanding Bittensor: To capitalize on the rise of TAO token, it’s important to understand the problem Bittensor is working to solve and why a decentralized, collaborative AI network is important.
- Monitoring TAO Subnet Projects: Watching projects that might be joining a TAO subnet can provide insights into potential growth areas within the TAO ecosystem.
- Exploring Bitcoin DeFi: Participating in the Bitcoin DeFi ecosystem, such as the Merlin’s Seal farm or the Stacks ecosystem, could provide opportunities to capitalize on its growth.
- Tracking On-Chain Derivatives: The surge in on-chain derivatives volume suggests that monitoring developments in this area could be beneficial.
- Considering NFT Lending: The rise of NFT lending indicates that exploring this area could unlock new opportunities in the NFT market.
