1. Merlin Chain
BTC's L2 star project attracted a lot of funds and popularity before it went online. After it went online, its performance was very unsatisfactory, falling from the highest point of 1.7U to around 0.32U, and the rebound was also very weak, weakly rebounding to around 0.677U, which was completely inconsistent with the previous popularity of Merlin.
However, I am still very optimistic about the future of Merlin Chain. When we do investment research, we are not concerned about how much the price rises or falls, but whether this track has room for growth in the future.
First, let's look at the L2 track of BTC. Many newbies don't know what L2 means. Let me explain briefly that L1 is the chain of BTC itself. If you transfer money directly on BTC, you need to register on the chain and pay the handling fee directly. For example, if you send a courier, you pay the fee for one courier.
L2 layer, you can think of it as putting 100 express parcels in a box, and the shipping fee is still the same as the previous one. L2 layer is the wholesale model. If you transfer money once, it will be registered in L2 first, and then when the number of other transfers reaches a certain number, it will be transferred to the BTC chain for verification.
The advantage of doing this is that it can expand the application scenarios of BTC. Previously, the gas fee of BTC was too high, with dozens of U being transferred and hundreds of U being transferred during congestion. However, after the development of L2, the gas fee can be reduced a lot. It may be only 10% of the original (like ETH's L2, op, arb, strk, etc.), and the ecological scenario of Bitcoin can be developed. Bitcoin is not short of funds to pull the price. With the support of such popularity, funds, and hot spots, L2 will only develop better and better.
Merlin is considered as the leading project of BTC's L2 layer. The current circulation volume is 360 million, and the circulation market value is 140 million US dollars. The circulation rate is 17.4%. Now you need to pay attention to the time of unlocking the tokens later:
Merlin officially announced (April 18) that its airdropped tokens will be unlocked in batches: 50% in the first month, 25% in the second month, and thereafter 12.5/6.25/3.125/3.125 in six months.
In the first 6 months, only users’ coins will be circulated in the market (the team will lock them for 24 months and then release them linearly, i.e., lock them for 24 months + release them for another 24 months = 48 months, and institutions will need 24-48 months to unlock them; the ecosystem’s tokens will be announced later).
In other words, in terms of the chips in the market, as long as three months later, the chips of the airdrop tokens will basically be released. The airdropped chips are about 500 million, and the selling pressure will be almost over at this time.
The second layer of Bitcoin is more useful than inscriptions in actual applications, and directly solves practical applications. Therefore, I personally am very optimistic about Merl. Its imagination space is larger than that of inscriptions. Inscriptions solve the problem of issuing coins, while Merlin solves the problem of allowing more applications to use Bitcoin.
If you ask Merlin about the bottom-fishing range: I think when the market value is close to $100 million, it is a very cost-effective bottom-fishing range. I won’t say much about the future, but it won’t be a problem for the market value to reach $500 million.
