- Bitcoin blockchain’s BRC-20 tokens have witnessed massive price rallies despite low trading volume.
- Meme coins on the Bitcoin blockchain have hit a market capitalization of $320 million.
- BRC-20 transactions have pushed miners’ fees 11% higher, reminding users of elevated transaction fees from 2020.
Ordinals are a type of NFT (non-fungible token) on the Bitcoin blockchain, founded by Casey Rodarmor. BRC-20 is an experimental token standard on the Bitcoin blockchain modelled after Ethereum’s ERC-20 that allows users to attach data to individual satoshis (Ordinals) on the BTC blockchain.
The recent spike in BRC-20 adoption and popularity is driving a meme coin rally on the Bitcoin blockchain.
Also read: AAVE V3 deployment on Ethereum layer 2 METIS network unanimously approved
Meme coins thrive on the Bitcoin blockchain
Crypto assets built on the BRC-20 token standard are rallying. The category’s market capitalization climbed to $320 million, despite low trading volume.
Meme coins on the Bitcoin blockchain
Gate.io, a leading cryptocurrency exchange, recently announced the listing of BRC-20 token ORDI, fueling a rally in the meme coin. Minting meme BRC-20 tokens has emerged as a trend and crypto experts at Airdrop Official have shared a step-by-step process for the same.
BRC-20 is the next trend.
— Airdrop Official (@its_airdrop) May 7, 2023
It has already reached a $300Mn+ market cap within just 2 months of launch.
Still way too much smaller than ERC20's marketcap, making it an early opportunity for #Airdrops.
Here is how to mint, buy BRC-20, and more pic.twitter.com/QtDLVI8fEm
Assessing the impact on the Bitcoin blockchain
The arrival of BRC-20 tokens and their popularity has resulted in an increase in block generation time on the BTC blockchain. A Chinese journalist, Colin Wu, reported that the Bitcoin network did not produce a block at block height 788,759 for nearly an hour today. A similar occurrence was noted on June 11, 2021, when the block generation time at a height of 687,143 reached 119 minutes. In April 2021 it was as high as 122 minutes.
Higher block generation time slows down the Bitcoin blockchain and this is a negative impact of BRC-20 projects on BTC. Interestingly, Ordinals or Bitcoin-based NFTs have significantly influenced miner fees, pushing them 11% higher to levels observed in 2020.
Bitcoin miner revenue from fees
A spike in fees on the Bitcoin network translates to higher revenue for miners in the BTC network. Ordinals have therefore increased miner revenue, but they have not catalyzed a Bitcoin price rally yet.
At the time of writing, Bitcoin is exchanging hands below the $28,000 level following the recent pullback.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.