Opinion: Why You Should Be Bullish on Beam?
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Opinion: Why You Should Be Bullish on Beam?
Compared to competitors, Beam Network has a strong ecosystem and product offerings.
Navigating Web3 tides with focused insightsAuthor: IM
Translation: TechFlow
I spent the past week diving deep into Merit Circle and Beam. Here’s why I’m bullish on $BEAM.
Here's what this article covers:
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History of Merit Circle
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Products
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Tokenomics and supply dynamics
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Competitors
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Potential catalysts
History of Merit Circle
What exactly is Beam? It's an open-source blockchain that provides a gaming network enabling game studios and developers to integrate blockchain technology into their games via SDKs and chain-agnostic products.
But it originally began as a DAO in 2021.
Back in 2021, they raised $4.5 million from leading investment firms and angel investors.
Products
Since the launch of the Beam network, the Merit Circle ecosystem has developed a robust suite of products. These products are chain-agnostic and can be adapted to any blockchain.
All fees generated through the Beam SDK are used to buy back and burn $BEAM.
Here’s a real-world example of the Beam SDK in action: Crystals Of Naramunz, a game built on Beam, demonstrates how Sphere (Beam’s in-game NFT marketplace) can be used within games.
Click here for a detailed walkthrough. The post perfectly showcases wallet abstraction and user-friendly UX within the game.
Tokenomics and Supply Dynamics
$BEAM is currently used for:
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Gas fees on the network
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Voting
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Paying for its product suite/SDK
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In the future, when transitioning from PoA to DPoS, $BEAM will be used for staking.
Currently, the $MC token is undergoing a 1:100 migration, with the deadline set for October 26, 2024.
So far, 95.6% of $MC has been migrated. $MC migration = $MC burned = $BEAM minted. If $MC remains unmigrated, the total supply of $BEAM will decrease. Click here to track migration progress.
Looking at top holders (such as CEX wallets), key players like Maven 11 and Inception Capital (formerly OP Crypto) are also signers of major DAO multisigs. This is a positive signal, as top holders have long-term vested interests.
I estimate the annualized deflation rate of $BEAM to be -6%. This does not include the one-time burn of 200 million $MC tokens due to MIP-20. From a supply dynamics perspective, this is highly bullish—resulting from MIP-7.
My calculations are shown in the image below. Anyone can track burn events at: 0x4f2e21062db87d1023e6E5941c5E8C2de32B44a2
Competitors
Compared to competitors, Beam Network boasts a strong ecosystem and product offering. Additionally, it ranks third in market cap and fourth in FDV among competitors, despite being the youngest gaming network.
In terms of on-chain metrics, Ronin currently leads by a significant margin (measured by UAW—unique active wallets—and transactions). I highly recommend reading this thread about Ronin for a deeper understanding of $RON.
Compared to other competitors, $BEAM has lower UAW and transaction volume.
This is understandable, as it's a young network with the fewest live games. Current focus is on infrastructure development and cross-chain expansion.
In terms of price performance, as of April 4, $BEAM is up 76% year-to-date, ranking fourth among competitors. It's very close behind $XAI and $GALA.
$RON is the top performer, while $WEMIX is the weakest.
Potential Catalysts
Here are some catalysts worth watching:
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Q1 2024 financial update
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Potential partnerships with other chains
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Upcoming game launches
Q1 2024 Financial Update
Given market conditions, I’m optimistic about their financial health.
Recap: A larger treasury means greater potential for $BEAM buybacks and burns → positive price impact.
How the treasury works: For every $1 in treasury investment gains realized, up to $0.75 is allocated to buy back and burn $BEAM, with the remainder returned to the treasury.
Currently, no other gaming-focused public blockchain does this. Click here for more details.
Potential Partnerships With Other Chains
Any chain using Beam's SDK generates fees, which translates into more $BEAM buybacks and burns.
High transaction volumes (swaps, LP, NFT mints, bridging, SDK usage) lead to increased $BEAM burns.
Sphere (their in-game NFT marketplace product) has already integrated with the ImmutableX zkEVM chain.
Upcoming Game Launches
While browsing their website, I noticed a long list of upcoming games. Examples include:
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ArmourX
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Realm Hunter
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Walker World
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TrialXtreme
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Eclipse of Eden horde
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Devomon Callisto
Conclusion
Fundamentally, the Beam and Merit Circle ecosystem offers a strong product suite and favorable supply dynamics, currently in a deflationary state. Combined with the catalysts outlined above, I remain optimistic about $BEAM in the coming months. Personally, I hold $BEAM.
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