# 251006 Merlin Monday Summary By [Merlin Community 🔼](https://paragraph.com/@merlin-community-2) · 2025-10-07 --- TL;DR ===== 💯 **Event Highlights** * Token2049 sparked bullish sentiment; altcoins and BTCFi projects gained traction. * Key Focus: on AI, on-chain trading, DeFi. đŸȘ„ **Merlin & BTCFi Update** * New BTC staking vault launching soon; partnerships include NASDAQ-listed companies. * Growing BTCFi adoption for retail & institutional users; MERL showing steady performance. 📈 **Market Insight** * Perp DEX success requires liquidity and institutional backing; small teams struggle. * NFT strategies less dominant; liquid assets like BTC & ERC-20s lead. * Builder advice: execute, network, stay open-minded; steady growth beats hype. * * * Summary ======= **_Post-Token2049 Sentiment & Market Revival_** **Jeff:** Token2049 in Singapore was hectic but exciting, with more side events and energy than ever. Bullish sentiment dominated — Bitcoin hit new highs, and altcoins are strong. **_Key themes: AI, on-chain trading, and DeFi innovation_**. Projects like Aster, HyperLiquid, and newcomers like 0G are advancing the “trade on-chain” narrative, while ecosystems like Aptos focus on perpetual trading products, meeting strong user demand. Overall, despite macro concerns, **_the market is turning risk-on with renewed optimism_**. **_The Future of Perp DEXs — From Small Teams to Institutional Builders_** **Jeff:** I’ve spoken with many perp founders — **successful perp DEXs now require large, well-funded teams**, not small startups. It’s not just technology — liquidity is key. Order book models need market makers to provide depth; if they lose money, they leave. HyperLiquid excels because its market makers are profitable, with nearly $1T traded. Like top centralized exchanges — Binance, OKX, Gate — success relies on depth, liquidity, and activity. New perp DEXs must master this liquidity game to compete chain-to-chain. **_NFT Strategy Meta & Risk-on Season_** **Jeff:** Honestly, I think **_NFT strategy products won’t lead this cycle_**. Liquidity flows to assets with the most activity, like Bitcoin. Strategy products work best around tokens with high liquidity, like ERC-20s. For retail investors, I always say: **_trade what you know_**. NFT experts will outperform in that space, but if you’re not embedded in the community, stick to your edge — chasing every trend rarely pays off. **_Merlin’s Next BTC Staking Vault & Expanding BTCFi Partnerships_** Jeff: Yeah, the next **_BTC staking series will be announced within a couple of days. And yes — there will be a second round_**. This time, we’re not just working with retail users; **_we also have NASDAQ-listed companies, whales, and large LPs participating on Merlin Chain_**. Returns will be balanced, similar to the first round’s ~17% APR, though longer-term stakes may earn slightly more. This phase focuses on ecosystem expansion, partnering with Base, Solana, Falcon, Hemi, and Momentum. The goal is diversified yields across BTCFi, and the narrative is now widely accepted — Bitcoin momentum is driving adoption across stablecoins, lending, DEXs, and bridges. **_Expanding BTCFi Partnerships_** Jeff: There’s strong demand from both retail users and exchanges to participate in Merlin’s BTCFi. Platforms want to provide their users with on-chain yields safely, without moving funds off centralized exchanges. Over the past year, BTC deposited in Merlin has grown significantly, showing high returns. The focus is on diverse partnerships — from on-chain wallets like MetaMask to major CEXs — enabling users to earn yield on Bitcoin seamlessly. This is just the beginning of widespread BTCFi adoption, with potential for bank-like integration offering 5%+ Bitcoin yields across institutions and countries over the next 5–10 years. Personally, my focus is on digital assets, Bitmaps, inscriptions, and memes, but right now at Merlin, **_we are emphasizing BTCFi because institutions, partners, and users are asking for it_**. I’m being pushed to explore more yields and manage larger Bitcoin allocations, especially with BTC prices rising and strong market demand. So, for now, BTCFi is our main focus, even as I continue to pursue innovation in other areas. **_Merlin's Institutional Focus and Quiet Success_** **Jeff:** I mean, yeah, institutional strategies may not be “sexy,” but **_they generate real revenue_**. Consistent, quiet work pays off—TVL and liquidity build quietly, and over time it shows results. For Merlin, the MERL token performance is strong, even if the spotlight isn’t on it. People often don’t realize how much impact we have—bridging Bitcoin to other chains, supporting projects, and acting as a major liquidity and creative provider. I don’t worry about hype; steady revenue and consistent building are what matter, and changing people’s perspectives as a builder is the most exciting part. Personally, I enjoy creative work with inscriptions and memes, but right now BTCFi is our main focus because the market and partners demand it, and we’re trying to deliver steady results while pushing innovation forward. **_Advice for Builders: Execution, Networking, and Open-mindedness_** **Jeff:** I think becoming a successful builder is always hard, especially in a challenging cycle. You need a clear idea of what you’re building and the willingness to be open-minded. Talk to as many people as possible—other projects, protocols, chains, and bridges. Even if you think you can’t learn from someone, you often do when you dig into the details. Execution is different from planning. Having a good plan isn’t enough; building partnerships, connections, and understanding the ecosystem is critical. Don’t stay in your small circle—explore, communicate, and learn from others, even if they’re doing something very different. That’s how you grow, adapt, and eventually achieve success. **_Post-Event Reflection & Focus on the Future_** **Jeff:** Last week in Singapore was both the best and worst with F1 and Token 2049—the traffic was crazy, and it was hard to catch up with friends. Now that it’s over, I feel relieved and can get back to focusing. I don’t plan to attend more events this year because the market is rising and we need to stay in the zone. Big things are coming over the next three months—not just in Bitcoin, but across other projects too. I’m really excited for the next phase and the progress ahead. --- *Originally published on [Merlin Community 🔼](https://paragraph.com/@merlin-community-2/251006-merlin-monday-summary)*