Memecoins Meet Bitcoin?
Fees on the Bitcoin blockchain have surged to two-year highs due to the rising popularity of BRC-20 tokens and the Ordinals protocol, as first reported by CoinDesk.com.
❗Why It Matters
The surge in transaction fees and the rapid growth of BRC-20 tokens and Bitcoin Ordinals protocol signifies a broader exploration of utility and features not previously explored on the Bitcoin blockchain. While more people participating in these new token economies showcases the potential versatility of the Bitcoin blockchain and its potential to support various use cases beyond just a store of value or medium of exchange, the increased network congestion has also led to temporary issues at crypto exchanges like Binance, which paused Bitcoin withdrawals twice over the weekend.
Plus, as fees increase dramatically, it becomes more difficult for most interested parties to participate.
The Deets
- Bitcoin transaction fees reach nearly $20
- Over 3 million NFTs tied to the Bitcoin blockchain
- BRC-20 token standard spurs digital artwork
- Ordinals marketplace Ordi leads with a $220 million market cap
The Details
Transaction fees on the Bitcoin network have reached a two-year high of nearly $20, driven by increased demand for block space due to the growing popularity of BRC-20 tokens and the Ordinals protocol. The BRC-20 token standard has encouraged the creation of various digital artwork and meme tokens built on Bitcoin, with more than 11,000 tokens and a cumulative market capitalization of $1.6 billion available on the open market.
The Ordinals protocol, which enables users to embed data into the Bitcoin blockchain by inscribing references to digital art into small BTC-based transactions, has further contributed to this uptick. We have seen many ETH collections transition over to the Bitcoin Network such as OnChain Monkeys, DeGods Ordinals, and even Yuga Labs with TwelveFold. The Ordinals marketplace Ordi is the most valuable BRC-20 token with a market capitalization of $220 million and 7,300 unique token holders.
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