Author: CoinW
CoinW, the world's leading digital asset trading platform, has launched 0xDoge tokens in the Innovation Zone. Since January 17, 2024, 18:00 (UTC+8), the 0xDoge/USDT trading pair has been opened for trading. To celebrate the launch of 0xDoge, the 0xDoge bounty program with a total prize pool of US$9,500 has been launched.
With the wave of the Bitcoin ordinal market bull market, the rise of the BRC-20 token market has driven the boom of the entire cryptocurrency industry. However, this growth has also brought new challenges, especially in the dispersion of inscription token liquidity, which is becoming a key factor hindering the healthy development of the market and the deep participation of users. Therefore, the market urgently needs a solution that can integrate and accelerate liquidity.
The core value of the inscription token market lies in its uniqueness and spontaneous liquidity. Currently, the most suitable platforms are Unisat and Unielon, which have the same genes and principles, but are very young in the entire inscription market. The liquidity of many projects is not enough to support high-value transactions. This limitation highlights the market's urgent need for a platform that can effectively aggregate liquidity and simplify the transaction process.
1. The Birth of 0xDogeswap
0xDogeswap is a cross-protocol script asset aggregation and exchange platform based on Dogechain. The platform can realize the smooth conversion of script assets between different inscription protocols, greatly improve the liquidity of DRC-20 assets, and greatly simplify the user operation process. The launch of 0xDogeswap aims to eliminate the transaction barriers of DRC-20 digital assets on the chain and connect multiple trading markets between Doginals and Cardinals protocols. Users can easily conduct cross-protocol asset transactions without transferring assets between different blockchains, thus realizing truly decentralized asset management and opening up liquidity channels for the DRC-20 market.
Advantages and features
Broad user base
0xDogeswap is built on the foundation of Dogecoin, the originator of the "meme" coin. According to ChainAegis data analysis, there are more than 3 million Dogecoin addresses holding between $1 and $1,000. This shows its deep foundation in a wide range of user groups and communities, providing fertile soil for the promotion and user participation of 0xDogeswap.
Thousands of times more ecological development space
BTC
ETH
DOGE
Market Cap
$675 Billion
$216 Billion
$12.97 Billion
TVL
$157 Million
$48.7 Billion
$3.49 Million
TVL/Market Cap
0.023% of MC
23% of MC
0.026% of MC
From the data comparison, BTC and DOGE chains based on the UTXO model have thousands of times more room for ecological development.
Market potential of DRC-20
The launch of DRC-20 tokens once pushed Dogecoin's daily trading volume to surpass BTC and ETH, showing its huge potential as an incremental market. The market acceptance of DRC-20 is also increasing, and it has been supported by mainstream exchanges such as OKX. It is expected that more Web3 users will join this market in the coming period.
2. Doge cross-chain ecosystem is expected to surpass Ethereum ecosystem
During the last DeFi bull market, the development of cross-chain technology significantly solved the interoperability problem between different blockchain platforms. This technological advancement not only enhances the mobility of assets and information between different blockchain networks, but also expands market accessibility and improves asset utilization efficiency. According to Chainspot statistics, there are currently approximately 114 cross-chain bridges and more than 140 networks in the DeFi market. However, in the cross-chain field of Doge, no significant cross-chain aggregation project has yet become famous.
As Doge's infrastructure improves, there are several key factors that indicate that Doge's ecosystem is likely to surpass the Ethereum ecosystem:
Cross-chain demand: There is currently a lack of fully decentralized DOGE cross-chain solutions on the market, and there is no reliable cross-chain solution for inscription tokens. 0xDogeswap is the first project to propose cross-chain transactions for inscriptions, and plans to gradually expand to other protocols such as BRC-20.
Necessity of Doge cross-chain ecology: Since Doge itself is not Turing complete, its ecological development is more dependent on cross-chain infrastructure than Ethereum. Therefore, it is expected that a large number of Doge will build various decentralized applications through cross-chain technology in the future. This trend is mainly driven by market demand.
Influence of meme culture: Doge, with its unique meme cultural attributes, is more likely to attract new traffic and explore new application scenarios. This gives Doge a lot of room for imagination in its future market valuation.
In the DeFi era, we have witnessed the spectacular scene that the market value of cross-chain projects generally reached billions of dollars. In the current bear market, taking STG as an example, although the market value has dropped to 0.12148 billion US dollars, its cross-chain total locked value (TVL) is still as high as 0.33027 billion US dollars, surpassing its market value, showing that cross-chain projects have strong appeal and stability.
In comparison, we note that Doge’s market cap is as high as $11.68 billion. Assuming that the Doge ecosystem can attract 10% of the capital to enter the cross-chain field, we can foresee that its cross-chain TVL will reach $1.168 billion, which still has a lot of room for development compared to the market cap during the bear market.
3. Liquidity Challenges of Inscription Assets and the Future of Cross-chain Aggregation
In the current inscription cross-chain market, we can observe the bottlenecks faced by the development of inscription assets:
Limitations of interactions within the mainnet
The circulation of inscription assets within their native chains is limited, such as BRC-20 in the Bitcoin network and DRC-20 in the Doge network. These assets cannot circulate freely within the same network without corresponding cross-chain bridging tools, causing artificial obstacles to asset liquidity. This restriction not only affects the capital efficiency of assets within the network, but also suppresses market vitality to a certain extent, leading to artificial isolation of asset value.
The complexity of cross-mainnet interoperability
The liquidity problem of inscribed assets across mainnets is even more complicated. The technical and protocol differences between different blockchains have led to difficulties in asset interaction, further exacerbating market segmentation. This lack of interoperability not only limits the market scope of assets, but also hinders the global liquidity of assets.
The mismatch between market valuation and actual liquidity
Although the market valuation of inscription assets may reach millions or even hundreds of millions, these valuations are often based on illiquidity. Similar to the NFT market, the limited liquidity of inscription assets makes them prone to price fluctuations and may even lead to a cliff-like drop in liquidity.
4. Future Directions of Cross-Chain Aggregation
Solution requirements
The market urgently needs solutions to improve the liquidity of inscription assets and realize the free interaction of assets inside and outside the main network. This requires the development of cross-chain bridge technology that can connect different blockchain protocols, as well as an aggregated trading platform that can promote the flow of assets on a global scale.
Strategies to unlock liquidity
The improvement of cross-chain capabilities is essentially to release asset liquidity. Establishing a liquidity bridge between multiple blockchain networks will bring new market opportunities for Inscription assets and enhance their competitiveness in the global financial market.
The development of inscription cross-chain technology
With the continuous advancement of cross-chain technology and aggregated trading platforms, innovative projects such as 0xDogeswap are expected to drive the market into a new stage of development. In the future, we may see the emergence of native cross-chain solutions or the emergence of new leadership in existing markets.
In short, the liquidity challenge of inscription assets highlights the key role of cross-chain aggregation platforms in the development of future financial markets. The market's demand for efficient cross-chain interoperability solutions is becoming increasingly urgent, which will be an important force in driving the maturity of inscription assets. As technology continues to evolve, liquidity is expected to become the core factor driving the growth of the inscription asset market.
5. $9,500 Limited-Time Bounty Program Rewards CoinW Users
To celebrate the launch of 0xDogeswap, the reward program has been launched at 18:00 (UTC+8) on January 17th, and will end at 0:00 (UTC+8) on January 24th. Users can win 9,500 USDT rewards by registering, trading and participating in social media interactions. Click here to claim the bounty immediately.
About CoinW
CoinW is the world's leading digital asset trading platform. With security and transparency as the top priority, it adheres to the user-centric principle. With advanced technology, deep liquidity and rich currencies, CoinW has accumulated a broad user base and has become one of the safest digital asset trading platforms in the world. It is committed to security, transparency and compliance, adheres to the highest regulatory standards, and actively contributes to the advancement of the digital asset industry. To learn more about CoinW, you can visit the CoinW official website.
