0xDogeswap launches on CoinW, a new solution for cross-chain trading with inscription aggregation

Author: CoinW

The globally leading digital asset trading platform CoinW has launched the 0xDoge token in the innovation zone. Starting from January 17, 2024, 18:00 (UTC+8), the 0xDoge/USDT trading pair has been opened for trading. To celebrate the launch of 0xDoge, a bounty program with a total prize pool of $9,500 has been initiated.

With the wave of the Bitcoin ordinal market bull run, the rise of the BRC-20 token market has driven a surge in the entire cryptocurrency industry. However, this growth has also brought new challenges, particularly in the fragmentation of liquidity for inscription tokens, which is becoming a key factor hindering the healthy development of the market and deep user participation. Therefore, there is an urgent need for a solution that can integrate and accelerate liquidity.

The core value of the inscription token market lies in its uniqueness, which is minted by real people, and the spontaneously generated liquidity. Currently, the most suitable platforms are Unisat and Unielon, which share consistent genes and principles, but appear quite small in the overall inscription market. Many projects lack sufficient liquidity to support high-volume trading, highlighting the market's urgent demand for a platform that can effectively aggregate liquidity and simplify the trading process.

1. The Birth of 0xDogeswap

0xDogeswap is a cross-protocol script asset aggregation exchange platform based on Dogechain, capable of achieving smooth conversion of script assets between different inscription protocols, significantly enhancing the liquidity of DRC-20 assets and greatly simplifying the user operation process. The launch of 0xDogeswap aims to eliminate trading barriers for on-chain DRC-20 digital assets, connecting multiple trading markets between Doginals and Cardinals protocols. Users can easily conduct cross-protocol asset trading without the need to transfer assets between different blockchains, thus achieving true decentralized asset management and opening liquidity channels for the DRC-20 market.

Advantages and Features

• A Broad User Base

0xDogeswap is built on the foundation of Dogecoin, the "meme" coin pioneer. According to ChainAegis data analysis, there are over 3 million Dogecoin addresses holding between $1 and $1,000. This demonstrates a strong foundation within a wide user base and community, providing fertile ground for the promotion and user participation of 0xDogeswap.

• Thousands of Times 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, both BTC and DOGE chains based on the UTXO model have thousands of times of ecological development space.

• Market Potential of DRC-20

The launch of DRC-20 tokens once propelled Dogecoin's daily trading volume to surpass BTC and ETH, showcasing its enormous potential as an incremental market. The market acceptance of DRC-20 is also continuously increasing, having gained support from mainstream exchanges such as OKX. It is expected that more Web3 users will join this market in the near future.

2. Doge Cross-Chain Ecosystem Expected to Surpass Ethereum Ecosystem

During the last DeFi bull market, the development of cross-chain technology significantly addressed interoperability issues between different blockchain platforms. This technological advancement not only enhanced the liquidity of assets and information across different blockchain networks but also expanded market accessibility and improved asset utilization efficiency. According to Chainspot statistics, there are currently about 114 cross-chain bridges and over 140 networks in the DeFi market. However, there has yet to be a notable cross-chain aggregation project in the Doge cross-chain field.

With the improvement of Doge's infrastructure, several key factors indicate that the Doge inscription ecosystem may surpass the Ethereum ecosystem:

Cross-Chain Demand: Currently, there is a lack of fully decentralized DOGE cross-chain solutions in the market, and there are no reliable cross-chain solutions specifically for inscription tokens. 0xDogeswap is the first project to propose cross-chain trading for inscriptions and plans to gradually expand to other protocols such as BRC-20.

Necessity of Doge Cross-Chain Ecosystem: Since Doge itself is not Turing complete, its ecological development relies more on cross-chain infrastructure compared to Ethereum. Therefore, it is expected that a large number of Doge will build various decentralized applications through cross-chain technology in the future, driven mainly 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's future market valuation significant imaginative space.

During the DeFi era, we witnessed the spectacular phenomenon of cross-chain projects generally reaching market capitalizations of billions of dollars. In the current bear market, taking STG as an example, although its market cap has fallen to $0.12148 billion, its total locked value (TVL) in cross-chain still stands at $0.33027 billion, surpassing its market cap, demonstrating the strong appeal and stability of cross-chain projects.

In contrast, we note that Doge's market cap is as high as $11.68 billion. Assuming the Doge ecosystem can attract 10% of that capital into the cross-chain field, we can foresee its cross-chain TVL reaching $1.168 billion, indicating significant development space compared to its 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 is restricted within their native chains, such as BRC-20 assets in the Bitcoin network and DRC-20 assets in the Doge network. Without corresponding cross-chain bridging tools, these assets cannot circulate freely within the same network, creating artificial barriers to asset liquidity. This limitation not only affects the capital efficiency of assets within the network but also suppresses market vitality to some extent, leading to artificial isolation of asset value.

• Complexity of Interoperability across Mainnets

The liquidity issues of inscription assets across mainnets are even more complex. The technical and protocol differences between different blockchains lead to difficulties in asset interaction, further exacerbating market fragmentation. This lack of interoperability not only limits the market scope of assets but also hinders their global liquidity.

• Discrepancy between Market Valuation and Actual Liquidity

Although the market valuation of inscription assets may reach millions or even billions, these valuations are often based on illiquidity. Similar to the NFT market, the liquidity of inscription assets is limited, making them prone to price fluctuations and potentially leading to a cliff-like drop in liquidity.

4. Future Directions of Cross-Chain Aggregation

• Demand for Solutions

The market urgently needs solutions to enhance the liquidity of inscription assets and achieve free interaction of assets both within and outside the mainnet. This requires the development of cross-chain bridge technologies that can connect different blockchain protocols, as well as aggregation trading platforms that can facilitate asset flow on a global scale.

• Strategies to Release Liquidity

The enhancement of cross-chain capabilities is essentially aimed at releasing asset liquidity. Establishing liquidity bridges between multiple blockchain networks will bring new market opportunities for inscription assets and enhance their competitiveness in the global financial market.

• Development of Inscription Cross-Chain Technology

With the continuous advancement of cross-chain technology and aggregation trading platforms, innovative projects like 0xDogeswap are expected to propel the market into a new development stage. In the future, we may see the emergence of native cross-chain solutions or new leading forces in the existing market.

In summary, the liquidity challenges of inscription assets highlight the key role of cross-chain aggregation platforms in the future development of financial markets. The market's demand for efficient cross-chain interoperability solutions is becoming increasingly urgent, which will be an important force driving the maturation of inscription assets. As technology continues to evolve, liquidity is expected to become a core factor driving the growth of the inscription asset market.

5. $9,500 Limited-Time Bounty Program to Reward CoinW Users

To celebrate the launch of 0xDogeswap, the reward program has been initiated on January 17 at 18:00 (UTC+8) and will last for five days, ending at midnight on January 24 (UTC+8). Users can win a reward of 9,500 USDT by registering, trading, and participating in social media interactions. Click here to claim your bounty now.

About CoinW

CoinW is a globally leading digital asset trading platform. Prioritizing security and transparency, it adheres to a user-centered principle. With advanced technology, deep liquidity, and a rich variety of cryptocurrencies, CoinW has accumulated a broad user base, becoming one of the safest digital asset trading platforms in the world. It is committed to security, transparency, and compliance, upholding the highest regulatory standards and actively contributing to the advancement of the digital asset industry. To learn more about CoinW, you can visit the CoinW official website.