The price of BTC has been hitting new highs in 2024, making investors ponder a question: Will BTC enter a long bull market? A lasting bull market requires sustained buying power and long-term confidence from holders. Today, we review whether Binance's third phase of the Megadrop project, Solv Protocol, can bring long-term confidence to BTC holders. In terms of price prediction, we believe that the market cap of SOLV will benchmark or even exceed BounceBit, with a reasonable price range of $0.1 to $0.15, and if there is FOMO at the opening, it could exceed $0.15.
1. Listing Information
On December 30, 2024, Binance announced the launch of the third phase of the Megadrop project, Solv Protocol (SOLV), with detailed information about $SOLV as follows:
· Token Name: Solv Protocol (SOLV)
· Maximum Token Supply: 9,660,000,000 SOLV (to be increased by governance vote through BTC reserve fundraising plans)
· Total Supply of Genesis Tokens: 8,400,000,000 SOLV (86.96% of the maximum token supply)
· Megadrop Token Reward: 588,000,000 SOLV (7% of the total supply of the genesis token, 6.09% of the maximum token supply)
· Initial circulation when listed on Binance: 1,482,600,000 SOLV (17.65% of the total supply of the genesis token, 15.35% of the maximum token supply)
2. Project Overview
Solv Protocol is a Bitcoin staking protocol aimed at building a Bitcoin-centered financial ecosystem to unlock over $1 trillion in Bitcoin assets.
Through the staking abstraction layer, SolvBTC, and SolvBTC.LST (liquid staking tokens), the Solv Protocol allows both retail and institutional investors to gain diversified yield opportunities without sacrificing liquidity by seamlessly integrating Bitcoin into the DeFi ecosystem.
3. Product Introduction
Product Interface
The interface of the Solv Protocol is relatively simple, allowing users to exchange BTC for staking certificate assets SolvBTC from multiple chains, thereby starting to gain diversified yields from staking and DeFi.
4. Product Data
Key Indicators
Total Number of Users: 589,000+ users
TVL: $2.72B
BTC Staked: 25,990 BTC
Community Data:
Twitter: 315.2K, https://x.com/SolvProtocol
Telegram: 92K, https://t.me/Solv_Protocol
Discord: 112K, https://discord.com/invite/solvprotocol
5. Financing History
• This project has raised approximately $24 million through 4 rounds of private placement, with 28.86% of the total supply of the genesis token sold:
o This project raised approximately $1 million at a valuation of around $20 million.
o This project raised approximately $4.5 million at a valuation of around $45 million.
o This project raised approximately $6.6 million at a valuation of around $80 million.
o This project raised approximately $11.7 million at a valuation of around $200 million.
6. Token Economics
SOLV is the native utility token of the Solv Protocol, used for the following functions:
• Governance: SOLV token holders can vote on network governance decisions.
• Staking: By staking SOLV tokens on the staking abstraction layer, stakers can earn protocol emissions.
• Fee Discounts: SOLV token holders can enjoy fee discounts, including redemption fees for SolvBTC.
As of December 31, 2024, the maximum token supply of SOLV is 9,660,000,000 (dynamic, may increase through Bitcoin reserve fundraising plans by DAO governance). The total genesis supply of SOLV is 8,400,000,000. The circulating supply after listing on Binance will be 1,482,600,000 (accounting for 17.65% of the total supply of the genesis token and 15.35% of the maximum token supply).
Token Distribution:
Release Situation
6. Binance Listing Data
Recent Data from Binance Launchpool
Recent participation and trading intensity in projects launched by Binance reflect a relatively enthusiastic market. The average turnover rate on the first day of the last 5 Launchpool projects is 17.52 times, with two projects exceeding $1 billion in trading volume on their opening day. In terms of returns, recent projects' ROI has begun to show an upward trend.
Previous Megadrop
Binance has launched two phases of the Megadrop project, both of which had relatively active trading and maintained good returns compared to the opening price, making the Megadrop series projects worthy of attention.
BTC Staking Ecosystem
According to DeFillama data, Solv Protocol has become the third-largest protocol in terms of BTC locked value, with a lockup amount of 25,343 BTC and 598,000 participants.
7. Price Prediction
Taking the Megadrop project as a benchmark, the reasonable listing price of SOLV is between $0.1 and $0.15. Due to the locked value and the initial trading phase, we believe that the market cap of SOLV should exceed that of BounceBit, leading to a price prediction above $0.15, with a reasonable buying range between $0.1 and $0.15.
8. References
Binance Announcement,
Binance Research,
https://www.binance.com/zh-CN/research/projects/solv-protocol