Interest in Bitcoin Request for Comment, aka BRC-20, a token standard built on Ordinals and stored on the Bitcoin-based chain, has skyrocketed, driving the market value of the token up by several hundred percent.
According to data tracked by Ordspace, which built Ordinals, more than 8,800 BRC-20s have a market capitalization of $137 million, up from $17.5 million a week ago. ), an astonishing 682% increase. Also, in the early morning of May 2, the site momentarily displayed a market capitalization of $2.93 billion (approximately ¥402.7 billion). However, Ordspace said the numbers are not accurate and may be due to the low liquidity of some tokens.
DomoAn anonymous on-chain analyst created a token standard called BRC-20 in early March to facilitate the issuance and transfer of fungible tokens on the Bitcoin blockchain. This experimental invention comes a few weeks after the Ordinals protocol went public, allowing users to write digital art references into small transactions on the Bitcoin blockchain.
“Ordinals had unintended consequences, one of which was the invention of the fungible token standard, BRC-20, which made it possible to create fungible tokens on BT,” said Yield Farmer, an anonymous analyst. Dynamo DeFi says in the latest issue of its weekly newsletter. “Since launch, BRC-20 has accounted for nearly 6% of all Bitcoin activity.”
The BRC-20 standard is similar to the popular ERC-20 standard, but lacks the ability to interact with smart contracts. ERC-20 is a technical standard for fungible tokens created using Ethereum, the premier blockchain for smart contracts.
“BRC-20 does not create a smart contract that governs the token standard and its various rules familiar to the EVM chain. (SATS) and can be transferred between users,” said cryptocurrency exchange Binance.
Most of the active BRC-20 standard tokens are memecoins. At the time of writing, the top three coins minted using BRC-20 were ORDI, OG and PEPE.
According to Boolean Fund’s Mark Jeffrey, the launch of the BRC-20 token eliminated the need for a cryptocurrency exchange.
“With the BRC-20 standard, the Bitcoin blockchain will be the exchange. You don’t need Binance or Coinbase. All you need is a Bitcoin wallet. Gas,” Jeffrey said over the weekend.Tweetmentioned that the market cap of the BRC-20 token is rising.
With BRC-20’s, the #Bitcoin blockchain is the exchange.
There is no Binance, no Coinbase required. Just a Bitcoin wallet.
You create, buy and sell with sats. Bitcoin is now gas. https://t.co/oAA8K1iqXF
— Mark Jeffrey (@markjeffrey) April 30, 2023
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Original: ‘Bitcoin Request for Comment’ Tokens Surge to $137M in Market Value