Merlin Chain Updates
MERL TGE 1-Year Milestone: Future focus on financial stability, fundraising, and attracting regulated institutions.
Testnet Upgrade: Fork 12 boosts TPS by 50-100x, with mainnet upgrade in May.
PoS Expand: PoS Mechanism will involve more assets, including Bitcoin.
AI Integration: Active AI integration with announcements coming soon, plus exposure through events like Token2049.
M-BTC & BTCFi Cross-Chain
M-BTC Growth: Gaining traction with Kernel integration and Achieve $200M TVL and gaining traction with multichain integration(live KernelDAO and Hemi).
BTCFi Evolution: Ecosystem BTCFi-related projects(like Bedrock, Solv, Avalon,etc..) and strategic partners (like Babylon, Kernel, etc..) has listed on major CEX like Binance and OKX.
BTCFi Expansion & Institutional Interest
Yield Generation: Institutions are locking Bitcoin in BTCFi for yield.
Miner Shift: Miners, once skeptical of Ordinals, are now regretting missing out on the yield opportunities within BTCFi. While mining remains their primary focus, they’re also exploring real estate and energy-efficient investments to cut costs.
Market Outlook
Exploring the Future of Protocols Like Alkane and Diesel
Jeff: Alkane and Diesel are gaining attention, with the IDClub pushing hard in this space. Diesel might resemble Bitmap, where each “block” has its own mint. While I haven’t explored Diesel deeply yet, I’m monitoring the overall protocol.
Using WebAssembly (WASM) for Bitcoin transactions is feasible. Examples like UniSat with BRC-20 swaps and Layer 1 swaps show that innovative solutions like BitVM are making it possible. Babylon has already implemented similar approaches, and I’m eager to see more developments.
As for meme coin builders, many are likely pivot to new projects like Alkane or Diesel if the market improves and new assets show promise.
Gold, Bitcoin, and the Future of the Dollar
Jeff: The rise in gold prices, driven by global economic uncertainty and U.S. debt concerns, is benefiting Bitcoin as it acts as a hedge against inflation. If the dollar weakens, Bitcoin should follow gold’s upward trend. The question of Bitcoin's value in a world where the dollar loses its dominance is intriguing. If the dollar fades, Bitcoin could become the primary measure of value, as seen in countries like Turkey and parts of Africa, where currencies fluctuate rapidly. Although Bitcoin was originally envisioned as a global cash alternative, the shift towards regulation and compliance in the crypto space complicates this vision. However, with the ongoing geopolitical tensions, Bitcoin’s role as "digital gold" may become more pronounced.
In terms of fast transactions, Bitcoin's scalability through solutions like Lightning Network is already seeing real-world use, especially in countries like Turkey and Southeast Asia. Despite Bitcoin's block time limitations, these solutions enable efficient, real-time payments.
Merlin's One-Year Milestone and Future Focus
Jeff: Merlin just celebrated one-year anniversary(MERL TGE), which marks a significant achievement in a space where many projects don’t make it past a year. Despite ups and downs, Merlin has continued to build and grow. The focus has shifted from ecosystem development to financial stability, ensuring that the community stays engaged with a healthy token price. Many projects, like Solana, saw resurgence when prices rose, and Merlin is aiming for similar growth by focusing on fundraising, listings, and attracting regulated institutions. The goal is to build a solid foundation that will draw more developers and users, leading to a thriving ecosystem in the future.
Merlin Chain’s Upgrades and Future Roadmap
Jeff: This quarter, Merlin Chain upgraded its testnet from Fork 9 to Fork 12, boosting TPS by 50-100 times, bringing it on par with top chains like Arbitrum. The mainnet upgrade is planned for May, marking a crucial milestone. Additionally, the PoS mechanism will expand to support more assets, including Bitcoin, with added yield opportunities. Over 110 million tokens are already staked, surpassing the remained MERL on major CEX live OKX and Bybit?like OKX and Bybit. The third update involves AI, where Merlin remains committed despite AI token downturns, believing it can significantly enhance the crypto space. These updates are set for rollout in Q2.
AI’s Role in Blockchain and Merlin’s Expansion Plans
Jeff: AI is poised to play a crucial role in the future of blockchain, and Merlin is actively integrating it into its ecosystem. While we can’t share all the details yet, we have some exciting announcements coming soon. In addition to product development, we're focusing on expanding our reach by bringing in more investors and securing additional listings. Meetings in London and Token2049 in Dubai are part of our strategy to boost exposure and prepare for several exchange announcements in early May. Fundraising and gaining visibility are key areas we’re working on.
M-BTC Expands with Significant Integrations and Impact on BTCFi
Jeff: M-BTC continues to gain traction, with users actively bridging it to other chains, including the latest integration with Kernel, which was recently listed on Binance. Currently, we have around $200 million in TVL and numerous whales leveraging their M-BTC for cross-chain opportunities. A campaign with Hemi, another BTC Layer2-liked project, has also seen increased MBTC activity. Merlin’s impact on BTCFi is significant; even if Merlin were to stop today, its contribution to bringing Bitcoin into new ecosystems would remain a pivotal moment in Bitcoin’s history. Projects like Babylon, Solv, and Pump.BTC are now being listed on major platforms like Binance, helping BTCFi evolve. As more projects get listed, the focus is shifting towards revenue generation and long-term sustainability, signaling the beginning of a revolution in BTCFi that holds even more promise for the future.
Bitcoin Yield Generation and Miner Perspectives on Ordinals
Jeff: Institutions, companies, and large Bitcoin holders, like those in Asia, are increasingly holding Bitcoin with the intention of generating yield. Babylon currently has around $5 billion in TVL, with BTCFi pushing this figure to $10 billion. These entities are seeking secure, permissionless ways to earn yield, and if they find a suitable solution, they will act on it. For example, suppose that Shizzy with 10,000 Bitcoin could easily generate a 5% yield with minimal effort. Even miners who initially opposed Ordinals, due to high gas fees creating instability, are now regretting missing out on the revolution. This shows how even Bitcoin maximalists, including companies like MicroStrategy, will eventually want more Bitcoin locked in ecosystems like BTCFi. As the space grows, BTCFi will have a positive impact on Bitcoin’s value, with more builders contributing to the ecosystem.
Miners, on the other hand, are not as focused on Ordinals because they are already making significant profits from mining. Instead, they focus on expanding their operations through real estate investments, building energy-efficient factories, and cutting costs with new energy technologies.
Market Outlook: Bullish or Bearish for Summer?
Jeff: While the market is still generally bearish, many are awaiting changes in policies from the SEC and other regulatory bodies. Movement is expected this year, but its scale is uncertain. It could be a brief surge in altcoins and AI tokens, or it could last for weeks, months, or even longer. While the exact timing remains unclear, something significant is likely to happen this year.