Recently, there have been clear signs of market rotation, with the popularity of Meme coins slowly entering an adjustment period, while established public chains are starting to rise, and Ethereum finally shows some strength 🔥.
In a bull market, some overseas institutions even predict that Bitcoin could reach $200,000. So, is the performance of the BTC ecosystem also worth looking forward to? 👇
1. What is the basis for institutions boldly predicting Bitcoin's price of $200,000?
On October 24th, Bernstein Research released the latest Bitcoin price prediction report, estimating that by the end of 2025, Bitcoin's price could soar to $200,000. This prediction significantly exceeds the expectations of investment giants like Standard Chartered, which have raised their future target price for Bitcoin to $100,000, thus sparking widespread discussion and attention in the market.
Bernstein believes that key factors for Bitcoin's price surge to $200,000 include increased institutional demand and potential regulatory changes.
Currently, there are three main signals:
1. The possibility of the U.S. establishing a national Bitcoin reserve.
2. If Trump is elected, the nominated Treasury Secretary or SEC Chair may be a Bitcoin advocate.
3. The demand for Bitcoin ETFs continues to grow, and MicroStrategy plans to raise $42 billion for Bitcoin acquisitions.
Many signals indicate that the market is entering a phase that may challenge Bitcoin skeptics.
2. Limitations and Challenges of the BTC Ecosystem
Bitcoin is charging ahead, and one of the best Betas is the BTC ecosystem.
Since the beginning of this year, the BTC ecosystem has been in a rapid expansion phase, with increasing capital and market attention. However, the application scenarios for Bitcoin are relatively limited, and there are issues of security and scalability that hinder further development.
Innovative projects in the solutions include @babylonlabs_io. The emergence of the Babylon protocol is timely, as it introduces a Bitcoin re-staking mechanism that extends Bitcoin's security and liquidity to PoS networks, allowing BTC holders to earn yields while protecting other chains.
This not only provides new use cases for Bitcoin but also breaks the traditional narrative of 'digital gold,' unleashing liquidity worth trillions and becoming a crucial support that addresses multiple pain points in the Bitcoin ecosystem.
Recently, Babylon Labs announced a strategic partnership with SatLayer, making SatLayer its designated re-staking partner, which has significant implications for the security and liquidity of PoS networks. Why is this so? A detailed analysis will follow. 👇
3. Project Analysis: SatLayer
What is SatLayer?
SatLayer is a re-staking protocol designed specifically for Bitcoin, similar to EigenLayer on Ethereum, but focused on extending the economic security of Bitcoin to more areas. It brings re-staking functionality to Bitcoin by integrating Babylon's staking architecture.
One of its core concepts is the Bitcoin Verification Service (BVS). Any decentralized application (dApp) can utilize Bitcoin re-staked through SatLayer to enhance its security and maximize Bitcoin's capital efficiency. For example, PoS L1 and L2 networks, as well as dApps, can benefit from this layer of security.
4. What does SatLayer becoming Babylon's designated re-staking partner mean?
On one hand, for Bitcoin stakers, re-staking BTC through SatLayer allows them to earn additional yields while securing PoS networks and dApps, enhancing the liquidity and capital efficiency of the Bitcoin ecosystem.
On the other hand, for developers, SatLayer's Devnet is already open, allowing them to deploy BVS in advance and participate in ecosystem building. Babylon and SatLayer will provide corresponding incentive support.
From November 5th to 9th at the Babylon Hacker House event in Bangkok, the potential of SatLayer has begun to emerge. Over 70 developers utilized the Babylon Chain and SatLayer BVS framework to create a series of innovative solutions. With the SatLayer mainnet expected to launch in early 2025, this collaboration will undoubtedly have a profound impact on the entire Bitcoin staking ecosystem.
Currently, ordinary users can participate in SatLayer's activities on the OKX Web3 wallet, with a future opportunity to share rewards of $88,000 in SatLayer tokens.
First, attention needs to be paid to SatLayer's X account. Second, hold 0.0001 $BTC in the OKX Web3 wallet. Interested users can participate on their own.