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The foremost thing to bring a change of reaction to a crypto investor’s face right now would be a bull market. For the past several months, the cryptocurrency market has been suffering heavily, with almost every other project losing around 80% of its value from the last bull market.
Clearly, this has put a strain on the industry and has resulted in lower trading volumes and overall interest. Several communities and dedicated project investors have started to pull out their funds, despite the hope of a bull market in the near future. This has to do with the huge inflow of negative news in the sector.
Speculations of the bear market ending have been around for a while now but still lack proof. Infact, the current scenario seems to be even worse. Major projects and communities have been collapsing due to liquidity crunches or financial crises.
The trajectory of the market when it comes to blockchain has historically been decided by the movements in the frontrunner cryptocurrency Bitcoin. The “OG” coin which was launched way back in 2009 by a person or group of unidentified professionals called Satoshi Nakomoto has been synonymous with cryptocurrency for more than a decade now.
However, things haven’t been looking great for Bitcoin recently too. BTC, which was trading at around $67,500 towards the end of 2021, is now trading in the $20,000 level. Even as the price fluctuates due to volatility, the broader picture in terms of weeks has been bearish.
However, a crypto analyst’s latest findings in his article have given newfound hope to a mass majority of crypto enthusiasts. In a piece published on 31st August, Zack Voel stated with proof why he believes that off-chain Bitcoin has been bullish for a long time.
Who is Zack Voel?
Zack Voel is a bitcoin mining and markets researcher who has compiled several cryptocurrency insights in the past. Currently, Voel is working as an analyst at the Bitcoin Mining software company Braiins.
About the article he published
The analyst started his piece by addressing the off-chain use cases within the Bitcoin ecosystem. He made sure not to mean any one particular off-chain use case. He stated that while the article itself was not strong enough to prove the off-chain use cases, it did showcase data that would prove his point.
Then he moved on to explain why projects built on layer 2 of Bitcoin were doing surprisingly well, despite the harsh criticisms faced by them. While growth as compared to other alternatives may not be as speedy, they have been consistent and, for the major part, always positive.
Built-on-Bitcoin protocols like Liquid Network, RSK, and Lightening network have been moving upward, regardless of the position bitcoin has been in for the past two years. He also mentioned how contrary to belief, tokenized Bitcoin products were doing great.
Similar to layer 2 protocols on Bitcoin, tokenized BTC, too, had been slammed by a huge number of early investors for a long time. However, the numbers tell a completely different story. It was seen that WBTC or Wrapped Bitcoin, a BitGo product on the Ethereum Network, had been growing exponentially. The supply of WBTC on Ethereum had grown from a mere 10,000 to more than 280,000 within a matter of two years.
He pointed out how other protocols, too, in an attempt to mimic Ethereum’s effort, had managed to create these tokenized or synthetic Bitcoins. While they, too, have seen significant adoption from the masses, Ethereum remains on the top with WBTC.
The researcher expressed his thoughts on the concept while also appealing to his audience. He stated that while a section would not agree with his views, making them convert to adopting tokenized BTC wasn’t his idea in the first place. He just intended to act as a medium of information exchange and to educate an already growing community which accepts his views already.
While his views were embraced by many, there wasn’t any significant change in the price of Bitcoin or any sort of major volatility within the ecosystem. At the time of writing, BTC is trading at $19,000 with a market cap of more than $363 billion.
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