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Bitcoin OP_CAT Proposal Gets Boost From Taproot Wizards' $30M Fundraise
Taproot Wizards will use the funding to build an ecosystem of applications using the OP_CAT Bitcoin improvement proposal
Feb 4, 2025, 9:03 p.m.
What to know:
- Taproot Wizards has raised $30 million with which it plans to build an ecosystem of applications using the OP_CAT Bitcoin improvement proposal.
- OP_CAT is a feature that could bring Ethereum-like smart contract functionality to Bitcoin.
- The Wizards have been attempting to "meme OP_CAT back into existence," the project said in an announcement.
Taproot Wizards has raised $30 million with which it plans to build an ecosystem of applications using the OP_CAT Bitcoin improvement proposal (BIP).
OP_CAT is a feature that Bitcoin's pseudonymous founder Satoshi Nakamoto included in the software's original code but which he/she/they removed out of concerns that it exposed it to risks such as denial-of-service (DoS) attack.
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Many developers have expressed a concern in bringing it back.
The proposal could bring Ethereum-like smart contract functionality to Bitcoin through introducing "covenants," or rules that determine how a specific transaction will function.
Taproot Wizards, whose vision is to "make Bitcoin magical again," sold a collection of 3,000 non-fungible token (NFT)-like pieces of digital art called "Quantum Cats" to drum up support for OP_CAT one year ago.
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The Wizards have been attempting to "meme OP_CAT back into existence," according to an emailed announcement on Tuesday.
Co-founder Udi Werthimer describes OP_CAT as "the missing piece" to attaining "permissionless programmability for bitcoin, allowing lending, trading and smart contracts without giving up self custody," in Tuesday's announcement.
The $30 million funding round was led by Standard Crypto.
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
What to know:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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