The surge in BRC-20 tokens, notably ORDI, is driving the Bitcoin-based token market cap towards $1 billion.
Bitcoin-based tokens are witnessing an unprecedented rise in popularity. This upward trend has seen the market cap of BRC-20 tokens, a type of Bitcoin-based token, reach the $1 billion mark. This sudden surge in demand comes from traders who are investing in tokens such as ORDI, MEME, and others.
Leading the pack, ORDI, the first-ever BRC-20 token, was recently listed on major cryptocurrency exchanges. The immediate effect of this development has been the dramatic rise in the market cap of all BRC-20 tokens combined, which currently stands around $1 billion, according to data from brc-20.io. This robust market growth has not only increased the value of these tokens but also the number of tokens in circulation.
BRC-20 Tokens: The New Trend
BRC-20 tokens, which have been in existence for just two months, represent an experimental framework for creating fungible tokens on Bitcoin using the Ordinals protocol. This protocol enables users to mint NFT-like assets on Bitcoin, called inscriptions. The term BRC-20 is an abbreviation for “Bitcoin Request for Comment”.
What is BRC-20?
Aren't we all familiar with the ERC-20 tokens developed on the Ethereum network's core? Well, BRC-20 is an experimental token standard that takes inspiration from the very ERC-20 tokens of the Ethereum ecosystem. pic.twitter.com/hGBQAbTUqI
— CHASE💀 (@Abrahamchase09) May 8, 2023
The credit for these tokens goes to an on-chain data enthusiast named Domo, who took inspiration from Ethereum’s ERC-20 token standard. Domo launched ORDI, the first BRC-20 token, on March 8. This launch has since triggered a meme coin frenzy similar to what the crypto market has experienced with tokens such as Dogecoin, Shiba Inu, and BONK.
Following ORDI’s launch, its market cap has soared to more than $400 million. Other similar tokens, such as PEPE, MEME, PIZA, and DOMO, have replicated ORDI’s success as they ride the wave of the meme coin mania sweeping the Bitcoin blockchain.
Mainstream Acceptance of BRC-20 Tokens
Monday marked a significant milestone for ORDI as Crypto.com and Gate.io listed the token for trading.
— Crypto.com (@cryptocom) May 8, 2023
This listing suggests that BRC-20 tokens are gradually gaining mainstream acceptance on cryptocurrency exchanges. Despite a slight dip from its earlier peak of $29.60, ORDI’s price at $20 represents a significant increase from its price just a week ago, which was $3.70.
The volatility of BRC-20 tokens reflects the evolving nature of the Ordinals space. Text-based inscriptions, which serve to create and trade these tokens, are becoming more prevalent while image-based inscriptions are losing their popularity.
Record Inscriptions and Impact on Bitcoin Transactions
Two days ago, the Ordinals protocol recorded a record number of daily inscriptions at over 400,000, taking the total number of inscriptions past 4.5 million since late January.
The growing popularity of BRC-20 tokens is also influencing the overall Bitcoin transactions. On Sunday, 65% of Bitcoin transactions were BRC-20 token-related, as per Dune’s dashboard. This surge in BRC-20 transactions led to network congestion, prompting Binance, a leading crypto exchange, to temporarily suspend Bitcoin withdrawals.
In conclusion, the rapid rise and mainstream acceptance of BRC-20 tokens represent a significant shift in the Bitcoin ecosystem.