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BRC-20

Bitcoin BRC-20 Tokens’ Market Cap Inches Closer To $1B

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Bitcoin’s new fungible token standard most popularly known as the BRC-20 has grown by leaps and bounds since its launch in March by an anonymous developer named Domo.

Recent data from brc-20.io, revealed that the total market value of all BRC-20 tokens is around $991 million.

The new surge follows the launch of ORDI, the first such token, on leading exchanges including Crypto.com and Gate.io. Its market capitalization was $411 million at press time.

Other notable BRC-20 tokens include MEME, PIZA, DOMO, and PEPE [a separate token from the popular Ethereum meme token of the same name], whose rise is reminiscent of the meme coin hype of DOGE and SHIB.

Modeled after Ethereum’s ERC-20, BRC-20, or Bitcoin Request for Comment” tokens are experimental fungible tokens issued and transferred on the Bitcoin blockchain using the Ordinals protocol.

Unlike ERC-20, the Bitcoin alternative is not relying on smart contracts. Instead, they are created and transferred using the Ordinals protocol on the BTC blockchain, which allows for the inscription of data on individual satoshis.

Data from Dune Analytics revealed that the cost of Bitcoin blocks has increased due to the mooning and doubling of the number of inscriptions in the last 10 days. BTC transaction fees are therefore influenced by this and are currently at their yearly ATH of around $29,43 for a single transaction.

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Bitcoin BRC-20 Tokens' Market Cap Inches Closer To $1B 2

According to an analyst, the original intent of Ordinals was to support NFTs, whose adoption has been slow since their February launch. But now half of all BTC transactions are BRC-20.

It was a long time since the BRC network has seen such demand. We can not say for sure if it’s just meme-season hype or new reality but there are some issues we might consider.

Bitcoin’s BRC-20 Utility Expands

BRC-20 tokens are still in their nascent stage compared to ERC-20 tokens. However, they have quickly gained traction, especially for the creation of meme coins and other digital assets, and their potential applications continue to grow.

The expert expects to see a sharp increase in the introduction of user-friendly tools, wallets, and platforms that simplify the creation, management, and trade of BRC-20 tokens.

In the future there also might be an attempt to close the gap between the BRC-20 tokens used by Bitcoin and those used by other blockchains, such as the ERC-20 token used by Ethereum, as the crypto ecosystem continues to evolve, he added.

Bitcoin Transactions Break Records: On-Chain Activity Surges To Unprecedented Heights

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Bitcoin on-chain transactions have seen an unprecedented surge recently, with the number of daily transactions crossing half a million. On May 1st, the figure touched a new record high of 682,000.

According to the tweet by Rafael Schultze, Co-founder & CTO of Glassnode, this surge in transaction counts rose by over two times compared to the 2022 baseline, which had remained stable at approximately 250,000 transactions per day throughout the previous year.

BRC20 Token Standard Drives Increase In Bitcoin Activity

The surge in Bitcoin transactions has been largely driven by text inscriptions related to JSON data. Ordinal inscriptions related to the new BRC20 “token standard.” According to Schultze, the rise in the number of Taproot transactions clearly indicates this trend. 

On April 30th, 37.5% of spent outputs were P2TR output types, while on May 1st, 60% of all Bitcoin transactions used Taproot – a record high. Interestingly, text inscriptions now constitute the most prominent ordinal inscription type in the Bitcoin network. 

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As per Glassnode’s data, text inscriptions account for 2.8 million transactions, followed by 650,000 images, 1,800 videos, 347 audios, and 19,000 other types.

Apart from the influence on the Bitcoin fee market, the rise in text inscriptions is also responsible for the recent increase in Bitcoin activity. In fact, they have even surpassed the total number of all other transactions for a brief amount of time. 

Schultze suggests that the rise in text inscriptions can be attributed to adoption of the new BRC20 token standard used to deploy contracts and mint/transfer tokens.

With the surge in Bitcoin transactions, miners have made considerable money. On May 1st, miners earned a total of $3.5 million in transaction fees, which is the highest value in two years when the BTC price was at $38,000. 

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Schultze notes that up to a third of all BTC fees paid to miners in recent days can be attributed to BRC20 transactions. Never the less recent surge in Bitcoin transactions has been driven by text inscriptions related to adopting the new BRC20 token standard. 

This trend has been further corroborated by the rise in Taproot transactions and the considerable fees paid to miners. It will be interesting to see how this trend develops in the coming days and weeks.

Related Reading | Ethereum DeFi Gets A Boost From Curve Finance’s Launch

ORC-20: Revolutionizing The Bitcoin Network With Enhanced Features For BRC-20 Tokens

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Recently, a new open standard known as ORC-20 has been introduced to enhance the features of the popular BRC-20 token standard on the Bitcoin network. ORC-20 aims to improve adaptability, scalability, and security while eliminating the risk of double spending. 

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However, critics argue that the new protocol’s complexity and centralization have raised concerns. It offers no significant advantage over the existing ERC20 standard, leading some to dismiss it as a mere meme coin hype.

The concept of ordinals and the BRC-20 token standard, initially introduced by Rodarmor and Domo, respectively, form the foundation for this new development. Ordinals are digital artifacts capable of carrying various data types on the Bitcoin network.

The ORC-20 protocol is designed to facilitate the wider adoption of ordinals. It enables the deployment of new ORC-20 tokens or migrating existing BRC-20 tokens through specific events such as deploy, mint, send, cancel, and upgrade. 

Importantly, any ordinal fungible tokens conforming to the ORC-20 standard can be considered ORC-20 tokens.

The limitations of the current BRC-20 standard, including immutable supply and maximum mint values after initial deployment, restricted naming space to four digits, and heavy reliance on external centralized indexers for inscribe transfers and bookkeeping, have prompted the need for improvements.

To address these limitations, the proposed ORC-20 protocol introduces several enhancements. It allows for the use of ticker symbols without size constraints, supports a wider range of data formats in a JSON structure, and enables secure transactions by adopting the UTXO model. 

Additionally, send transactions can transfer amounts to multiple receivers, and partial transactions can be canceled using nonces.

Improved Features: ORC-20 Vs. BRC-20 For Bitcoin Network

Moreover, the ORC-20 protocol facilitates the migration of existing BRC-20 tokens through the use of a wrapper ordinal. This special type of ordinal allows for the conversion of tokens from BRC-20 to ORC-20, with the migration process exclusively accessible to the deployer of the BRC-20 tokens.

It is important to note that ORC-20 is an experimental project, and the value or utility of tokens created using this standard is not guaranteed. Users are advised to exercise caution and conduct thorough research before utilizing ORC-20.

While ORC-20 brings potential advancements to the Bitcoin network’s token standards, its complexities and perceived lack of advantages over existing standards have generated criticism. 

However, the future adoption and success of ORC-20 will depend on the community’s response and its ability to address these concerns effectively.

Related Reading | Bitcoin Miners Hit New Revenue Milestone As Total Earnings Surpass $50 Billion Amid Mining Boom

Bitcoin: Here’s How BRC-20 Fuelling Rise In BTC Transactions

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Bitcoin Ordinals hit more than 372k Inscriptions, with total fees reaching $7.6 million, data from Dune Analytics showed.

This is coupled with a daily average of 682,281 Bitcoin transactions, with network fees of 23 BTC each day, or almost $656,000.

The unprecedented surge is attributed to “Bitcoin Request for Comment” or BRC-20 tokens on the Ordinals protocol created by an anonymous on-chain analyst named Domo on March 8th, 2023.

As per the Bitcoin manual, the BRC-20 is an experimental fungible token that utilizes Ordinal inscriptions of JSON data to deploy token contracts, mint tokens, and transfer tokens.

Simply put, it’s a method for storing a script file in Bitcoin that can be used to associate tokens with satoshis and then permit those tokens to flow from one user to another.

Despite sharing the same name as Ethereum’s ERC-20 token standard, these tokens are not capable of interacting with smart contracts and their various rules.

“This [BRC-20] is not a token standard like you’re accustomed to with [Ethereum Virtual Machine] chains, which create smart contracts that manage the token standard and its various rules. Instead, it’s simply a way to store a script file in Bitcoin and use it to attribute tokens to satoshis and then allow them to be transferred between users,” as explained by Crypto exchange Binance in its blog.

The demand for “Bitcoin Request for Comment” tokens, which were created using Ordinals and held on the BTC base chain, has, on the other hand, skyrocketed, and their market value has too surged.

Bitcoin Request for Comment Tokens Market Value

According to data tracked by Ordinals-builder Ordspace, the combined market valuation of more than 8,800 BRC-20 tokens currently stands at $137 million, an astounding gain of 682% from $17.5 million just a week ago.

In addition, the excitement and FOMO surrounding ordinals have caused the market valuation of BRC-20 tokens to increase by over $100 million in less than 60 days since the “launch” of BRC-20.

The majority of BRC-20 tokens in circulation are under the category of meme coins, which are digital currencies inspired by internet memes or hilarious elements. ORDI, OG, and PEPE are now the top three coins produced following the BRC-20 standard.

The advent of BRC-20 tokens, according to Mark Jeffrey from Boolean Fund, has eliminated the need for cryptocurrency exchanges.

Bitcoin Ordinals Smash A New Record Of 72K, Thanks To This

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Bitcoin ordinals tapped a new high of over 72k inscriptions all because of a newly launched “token standard” for the blockchain, “Leonidis.og,” the host of an Ordinals-focused podcast shared.

There was a lot of excitement around BRC-20 when it launched a month ago but eventually, the hyped died down. During the lull, devs built tools to make interacting with BRC-20 much easier and now we’re seeing ATH interest. I’ve said it before and I will say it again. UX matters!

As per the latest data from Dune Analytics, BTC ordinals recorded 72,328 inscriptions on April 2, surpassing its previous record of 31,692 on March 9 by an impressive 128%.

The spike is thought to be fueled by “Bitcoin Request for Comment” or BRC-20 tokens on the Ordinals protocol created by an anonymous on-chain analyst named Domo on March 8th, 2023.

According to the Bitcoin manual, the BRC-20 is an experimental fungible token that utilizes Ordinal inscriptions of JSON data to deploy token contracts, mint tokens, and transfer tokens.

Although the name is in reference to Ethereum’s ERC-20 token standard, these tokens cannot be used to interact with smart contracts and their various rules.

Simply put, it’s a method for storing a script file in bitcoin that can be used to associate tokens with satoshis and then permit those tokens to flow from one user to another.

That said, interest in Ordinals Protocol has skyrocketed since its launch on January 21, which allows users to engrave references to digital art into small transactions on the blockchain of the largest cryptocurrency in the world.

Bitcoin Ordinals Have “Striking” Advantages Over Ethereum

Ordinals have infused a much-needed acceleration of network growth along with a record rise in Bitcoin transactions.

Till now, nearly 800k unique inscriptions on Ordinals have been conducted.

Although ordinals remain a controversial topic among members of the Bitcoin community, a pseudonymous NFT developer and creator of the ERC721 software license, Dotta earlier spoke about the number of “striking” advantages compared to its Ethereum-based predecessors.

According to Dotta, unlike on Ethereum, tracking “NFT whales” on Ordinals is difficult as it prioritizes the privacy of the token creator. Moreover, every release needs its unique wallet.

Secondly, Ordinals cannot support off-chain data thus ruling out the possibility to attach a file from IPFS hosting, let alone AWS or any other Web2 cloud storage.

Dotta further claimed that despite the blockchain’s outward complexity, Ordinals could generate NFTs on it more quickly than on an EVM-compatible blockchain.