A cryptocurrency analyst, known as VirtualBacon, is making a bullish case for several altcoins that stand to benefit significantly when Bitcoin’s price begins its next major upswing. In a long X thread, the analyst expanded on the flourishing Bitcoin ecosystem, highlighting innovations such as Runes, BRC-20 tokens, and Ordinals that are poised to gain traction during Bitcoin’s next leg up.
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The Rise of Bitcoin’s Programmable Layer
According to VirtualBacon, the Bitcoin ecosystem is currently one of the most fascinating narratives in the crypto space. While Bitcoin was initially designed as a store of value and medium of exchange, lacking programmability, recent innovations aim to introduce decentralized finance (DeFi) functionalities to the world’s largest cryptocurrency.
These developments include smart contract layers or programmable meta-protocol layers, enabling token issuance, staking, decentralized exchanges, lending, and more. The focus is on utilizing idle Bitcoin in wallets and non-exchanges to create a wealth effect benefiting Bitcoin and the entire crypto space.
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Show more +Three Altcoins to Watch
In his analysis, VirtualBacon highlights three altcoins that he believes will benefit the most from the growth of the Bitcoin ecosystem:
- CoreDao (CORE): CoreDao is an Ethereum Virtual Machine (EVM) blockchain built and powered by Bitcoin, combining delegated proof-of-work from Bitcoin mining pools with proof-of-stake using its CORE token. VirtualBacon is particularly bullish on CoreDao due to its extended presence, mature tokenomics, and attractive re-entry point after recent consolidation.
- Tap Protocol (TAP): Unlike an EVM layer, Tap Protocol is a meta-protocol similar to Bitcoin Runes, Ordinals, and BRC-20s, offering more flexibility and decentralization. Tap introduces a new generation of fungible tokens on top of Ordinals, allowing for the creation and management of meme coins, stablecoins, and more. Its comprehensive functionality includes minting, transferring, staking, bridging, distributing, and airdropping tokens with low fees.
- Bitcoin Runes: Rather than betting on a single Rune, VirtualBacon suggests having a basket of the top Runes to leverage this emerging technology. He currently holds six Runes in his portfolio, including DOG•GO•TO•THE•MOON, RSIC•GENESIS•RUNE, PUPS•WORLD•PEACE, DECENTRALIZED, SATOSHI•NAKAMOTO, and the Bitcoin Wizards BRC-20 Token.
Bitcoin’s Evolving Ecosystem Holds Major Promise
VirtualBacon notes that the top two exchanges in Asia, Binance and OKX, are heavily investing in and promoting the Bitcoin ecosystem. Their support and the interest from the Asian crypto audience have already driven significant price surges in projects like Ordinals (ORDI).
The analyst believes that unlocking Bitcoin’s liquidity for DeFi is an exciting prospect. As Bitcoin’s market cap grows, even a small percentage of that liquidity bridging to Layer-2s, Layer-1s, and sidechains will create a thriving ecosystem for new tokens and projects. This massive liquidity injection is why VirtualBacon is so bullish on Bitcoin DeFi.
While acknowledging challenges with new token dynamics and low circulating supply for some projects, the analyst remains optimistic about the future of Bitcoin innovation and the potential for substantial gains in the altcoins mentioned.
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