Author: Yue Xiaoyu
Introduction:
The Web3 industry is developing too fast, and new things appear every day. Therefore, many daily thoughts are worth recording.
These thoughts will be updated in real time on the Twitter account and regularly summarized and published on the WeChat public account.
Recently, the BSC ecosystem has been making frequent moves, and the golden dogs have continued, especially the founder of Binance, CZ, who actually called out orders in person? Is Binance going to switch its focus?
We can specifically analyze Binance's recent actions and the intentions behind them.
1. Two major battlefields: wallets and public chains
In the Web3 ecosystem, wallets are a key battlefield, and public chains are another key battlefield.
Obviously, Binance lags far behind OKX in the wallet battlefield, with a gap of more than a year, but OKX will not stop, so it is difficult for Binance to catch up.
Even though Binance said it would reconstruct the Web3 wallet before, the thunder was loud but the rain was small, and its Web3 wallet is still difficult to use and has not caused any splashes.
However, in the public chain battlefield, OKX is the lagging one. Both OKTC and the latest Layer2 X Layer are basically ghost towns, and few people are playing. There are still many old projects on BSC, including DeFi and GamaFi, which already have a relatively mature ecosystem.
The gap between Binance Wallet and OKX Wallet is too big, so it can only change direction to cut into Web3. Binance's public chain BSC is much stronger than OKX's public chain OKTC, which is a good starting point.
What Binance needs to do is not to expand, but to shrink and focus on the key advantage battlefield.
2. Different ways of playing for wallets and public chains
If wallets are traffic entrances, public chains are more upstream and control the asset issuance end.
Public chains also have very high strategic value: Public chains play the role of asset issuance and infrastructure in the Web3 ecosystem and are the key to building an ecosystem. Through BSC, Binance can more directly influence and develop projects and applications on the blockchain.
The two have different strategies. The key to making a wallet is to quickly access new or popular ecosystems, so as to continuously acquire new users and traffic; while the key to making a public chain is to cultivate the ecosystem, which requires the establishment of a developer community, so that killer applications and high-quality targets emerge.
3. Behind the strategic adjustment is actually human will
After the return of Binance founder CZ Zhao Changpeng, he cannot directly involve Binance's exchange business, but he can continue to operate the on-chain business.
Regulators may restrict their direct participation in the daily management or decision-making of the exchange to prevent similar compliance issues from occurring again. But these restrictions do not include on-chain businesses.
As the founder of Binance, CZ still has influence on the overall strategic direction of Binance, especially when it comes to projects such as BSC that are crucial to the Binance ecosystem.
On Twitter, his public support for the BSC project and ecosystem, as well as his own interest in DeFi and on-chain businesses, all indicate that CZ has participated in and even led the ecological construction of BSC.
4. CZ's leading value in the BSC ecosystem
First, CZ's personal image is closely related to the Binance exchange. If he gets involved in the direct operation of the exchange, it could affect the public's trust in Binance due to past problems.
Instead, focusing on on-chain businesses is seen as a strategy to rebuild image and trust, and these businesses will be seen as innovation and progress in blockchain technology.
More importantly, by focusing on on-chain businesses, CZ can help Binance diversify its product lines and revenue sources.
Although the exchange business is the core of Binance, the on-chain business can provide additional growth points and reduce dependence on the exchange business.
In addition, on-chain business is more in line with the future trend of decentralization and Web3, thus providing Binance with more strategic advantages in long-term market competition.
5. To sum up
Whether from Binance's own performance in the two major battlefields of wallets and public chains, or from CZ's direction, the public chain will be the focus of Binance.
However, it does not mean that the wallet business will be abandoned, but the wallet business will be turned into a partner of the public chain ecosystem, which also brings stronger usage scenarios to the wallet. This is a complementary relationship.
For Binance, the public chain is a better entry point than the wallet, especially recently CZthrough memecoins have activated a wave of BSCeco-related targets, this trend will not stop, BSC The subsequent development of the chain is worth paying attention to.
6. Follow-up: How long can the Meme craze last?
Binance founder CZ hesitated to call for the BSC chain's $TST , and quickly listed it on Binance. Its beneficial effect has once again set off a wave of meme craze.
Is there any chance for the subsequent BSC ecosystem? How long can the meme craze last?
Conclusion first: CZ accidentally planted willows and they grew into a forest. Binance took advantage of the opportunity to promote the meme craze of BSC and activated the BSC ecosystem. There will be opportunities in the future, but this may be the last carnival. Participate and enjoy it.
When the meme craze began to appear on BSC, it marked that the Solana meme is moving towards the full-chain meme.
This kind of plot seems to have been repeated many times.
In the inscription craze in 2023, it was BTC inscription first, then ETH inscription, and later expanded to full-chain inscription;
In the AI Agent craze in 2024, it was Solana AI Agent first, then Base AI Agent, and later full-chain AI Agent appeared;
Now the meme craze has also shown such a development path, first it was Solana meme, and now BSC meme has appeared. Is this the last wave of the meme craze?
When a craze appears on the entire chain, it means that user reach, liquidity coverage, and market sentiment have all reached their peak.
A narrative or craze always presents a diffusion pattern from a specific chain to the entire chain.
(1) Initial stage (specific chain craze): Innovative or popular applications appear on specific blockchains, such as BTC inscriptions, Solana AI Agent, etc.
This initial stage is usually driven by novelty and early adopters, attracting a lot of attention and funding.
There will be a short window period at this time, and then other chains will quickly catch up.
(2) Expansion stage (full chain boom): When a boom becomes popular on multiple blockchains, it means that its concept or application has been widely recognized, and user reach and liquidity have been significantly improved.
The craze of the entire chain often marks the peak of market sentiment, because almost all mainstream and non-mainstream chains are involved.
However, this is also the most dangerous time. The market may suddenly stop and the bubble will burst quickly.
(3) Closing stage (the craze subsides): Projects on different chains begin to decline at the same time. Although there will be rebounds, the general trend is a continuous decline, and market sentiment begins to cool down.
Although 99.99% of Meme coins will eventually return to zero, projects with strong narrative support (such as Trump Coin) will continue to survive for quite some time.
We can enjoy the last carnival, but be careful not to fight too long, don't have diamond hands, and stop profits and losses in time.
Each craze has its own life cycle of rise, prosperity and decline. Don't hold on to a narrative. Our industry is often one hot spot after another.
Brian
Joy
Alex
Kikyo