Whoever can aggregate the inscription market will control the second half of the inscription market. What are the potential flashpoints in the inscription market?
After the ORDI price broke through the previous high and retreated, the SATS price continued to rise, and the Market Cap once surpassed ORDI. The market cap of the head inscription has caught up with the market cap of the head meme. At present, it seems that the first half of the competition in the inscription market has ended, and the status of the head inscription is basically determined.
In the past few weeks, users who missed BRC-20 have frantically flocked to major public chains, hoping to make up for the missed opportunity to get rich this year from the inscriptions on the heads of each public chain. Each public chain has also responded positively, and has established its own inscription market on the chain, which can not only attract a large number of users, but also increase interaction through inscriptions, and also take the opportunity to increase the price of the currency, why not. Although it has increased the task of staying up late to play inscription players, it is true that many people have earned dozens or even hundreds of times the profit.
This process also allows users in the circle to see some facts clearly. Some public chains, which claim to be the king of technology, collapse with an inscription. Some chains are unable to complete on-chain transfers for hours or even days. Overnight, the inscription became a touchstone to test the performance of the public chain and the strength of the technical team.
Judging from the current information, the old public chain is indeed more stable in performance after years of tempering. The team is also more experienced in dealing with temporary problems. For example, old public chains such as Polygon, Near, Avalanche, and Solana, the user experience of playing inscriptions is significantly better than that of other new chains (although the BSC chain will be stuck, it has not collapsed).
What are ❓ the potential flashpoints in the inscription market
At present, the inscription market is still continuing the "zoo market" of the last round of memes, but the number of public chains is limited, the total amount of funds in the circle is limited, and when the heat subsides, in the end, only the head inscription of each chain is valuable.
Every time the "zoo market" creates a large number of assets, the follow-up will definitely appear on these assets to "build blocks" of nesting dolls, which is what we often call "Fi". The emergence of Decentralized Finance before was because after the emergence of ERC20, a large number of tokens were generated in the market, and instead of leaving assets idle, it was better to put them all into Decentralized Finance for mining. The Non-fungible Token market boom behind is the same plot. A peak of $32 billion in Non-fungible Token assets was created in the market, driving a wave of NFTFi, GameFi, and SocialFi.
Essentially, the emerging assets in the circle are potential TVLs. Liquidity of inscriptions is worse than tokens, but better than Non-fungible tokens. The second half of the inscription market will definitely focus on the "Fi" of these inscription assets, after all, such a large amount of assets are scattered and idle in the hands of users, and the use of assets is too inefficient.
The inscription "Fi" can be roughly divided into three categories ⬇️ according to the difficulty of technical implementation:
1⃣️First, non-cross-chain interaction inscription mortgage lending. This type is the easiest to implement, after all, the inscription is a semi-decentralized asset, and teams that have done lending protocols or NFTfi can quickly complete the on-chain deployment of the product (which has already been announced by the project). The difficulty of this type of product lies in the calculation of the liquidity and overcollateralization ratio of different inscription assets, and there will be no problem when the price of inscriptions rises, and once it plummets, liquidation will become a fatal problem for this type of product. Of course, for inscription assets with excessive fluctuations and low depth, the risk of flash loans should also be avoided. These details will not be repeated here.
2⃣️The second is non-cross-chain interaction inscription pledge mining. Provide inscription on-chain trading pairs for pledge mining. You can do single pools or Long pools. You can also further boost by lock-up position, and quickly increase the pool Depth with veToken's high APY. The difficulty of this type of product lies in the semi-centralized nature of inscription assets, and the liquidity and depth of inscriptions will lead to greater fluctuations in inscription trading pairs. This problem is an inherent flaw in inscription assets. Perhaps you can consider using an appropriate joint curve when users stake inscription assets to iron out the Volatility of inscription assets over a certain period. However, this kind of Mining model design has high requirements, which is essentially high-frequency quantification after the inscription assets enter the pool, and is also affected by the large cycle of the inscription market.
3⃣️The third is a cross-chain interaction inscription asset management product. Such products may be the ultimate form of the second half of the inscription market. Users can deposit inscription assets in any chain through the platform and obtain the income of the corresponding token, which is equivalent to the inscription wealth management product. The platform is equivalent to the whole chain of inscription exchanges, at present, several major exchanges are adopting such a model, but it is not yet necessary to collect deposits through inscription financial products. However, like the first two types of products, the platform will be extremely risky when the inscription market crashes.
To sum up, inscription assets inherently survive in the problem of poor liquidity, coupled with the different protocol standards of various inscription chains in each chain, there is no swap, let alone cross-chain interaction, and users can only use U as a medium to trade, which greatly hinders the Fi process of inscription assets.
Inscription assets have also reached a crossroads, are they destined to miss out on Fiization like Non-fungible Token assets?
(Data source: Internet)
