The market capitalization of the BRC-20 token has experienced a remarkable surge of 600% in the past week, surpassing the transaction volume of standard BTC transactions on the network.
The BRC-20 token standard of Bitcoin has gained significant popularity within the crypto community, particularly following the recent surge of the Pepe (PEPE) memecoin. As of now, an impressive 8,500 distinct tokens have been created utilizing the BRC-20 standard. It is worth noting that a substantial portion of these tokens fall under the category of memecoins, exemplified by notable examples like PEPE and Memetic (MEME).
BRC-20 is a groundbreaking token standard built on the Bitcoin blockchain, taking inspiration from Ethereum's popular ERC-20 standard. It empowers developers to design and transfer interchangeable tokens using the Ordinals protocol.
The BRC-20 token standard, while inspired by ERC-20, has distinct differences from its Ethereum-based counterpart. Unlike ERC-20 tokens, BRC-20 tokens do not rely on smart contracts for their functionality. Additionally, the BRC-20 token standard necessitates the use of a Bitcoin wallet for minting and trading these tokens.
In early March, an on-chain analyst known as Domo introduced the BRC-20 token standard with the aim of enabling the issuance and transfer of fungible tokens on the Bitcoin blockchain. Over the past month, the market capitalization of BRC-20 tokens has experienced a remarkable surge, reaching $120 million. In just one week, the market cap has skyrocketed by an impressive 600%.
The recent surge in BRC-20 token activity has surpassed the original number of Bitcoin transactions on the blockchain. From April 29 to May 2, BRC-20 transactions accounted for more than 50% of the total transactions, outperforming regular BTC transactions.
On May 1, the volume of BRC-20 token transactions reached its highest point, reaching 366,000 transactions, while the overall number of transactions on the network amounted to 2.36 million.
With the increasing prevalence of BRC-20 transactions, transaction fees have experienced a significant upsurge owing to the heightened activity involving new tokens. Since its introduction in late April, the network has contributed an additional 109.7 BTC in transaction fees to miners.
With the increasing prevalence of BRC-20 transactions, transaction fees have experienced a significant upsurge owing to the heightened activity involving new tokens. Since its introduction in late April, the network has contributed an additional 109.7 BTC in transaction fees to miners.
The popularity of memecoins has become a prominent subject on the Ethereum blockchain, and a similar trend has emerged on the Bitcoin blockchain with the introduction of the BRC-20 standard. The surge in memecoin interest has also resulted in a substantial increase in gas fees on the Ethereum network, leading to congestion issues.
