News on May 11, according to the latest report from Bitfinex Alpha, the reason why BRC-20 is becoming more and more popular is because of the recent boom in Meme coins. Data shows that the market value of BRC-20 tokens has reached $858,775,461.
Since its launch, the BRC-20 token standard has grown significantly, with over 14,000 tokens issued. Some of the most popular tokens include ORDI, PIZA, PEPE, and MEME. The popularity of these tokens highlights the potential of the BRC-20 token standard and the Ordinals protocol.
The BRC-20 network does not support smart contracts, and the price of issued tokens is almost entirely dependent on market speculation. Therefore, it is not easy to form an opinion on the future of these tokens, as their 24-hour trading volume is less than 30% of the market cap, as is currently the case with ORDI. While many crypto projects started this way, and we have seen DOGE sustain high market caps under an inflationary model with limited use cases, there is still very little room for a token category based solely on speculation. It is hard for any analyst to imagine that this rally in BRC-20 tokens will continue unless more builds with real use cases are made on the protocol.
While the BRC-20 token standard is secure and fungible, it has limitations that may limit its adoption in the long run. An important limitation is its lack of EVM compatibility. BRC-20 tokens do not support smart contracts, which limits the ecosystem and adoption. Developers cannot access or build resources on the network, which can lead to a more micro-ecosystem and limited adoption.
Another problem with BRC-20 tokens is that they consume valuable block space, causing problems such as network congestion. This can lead to increased gas fees on the network, making it more expensive to transfer tokens. However, the security of the Bitcoin blockchain is top-notch, and its PoW mechanism makes it difficult for hackers to penetrate, ensuring users enjoy the best experience of transferring coins on the blockchain.
The introduction of BRC-20 and Ordinals will eventually pave the way for more possibilities of Layer1 blockchains. While the space is still exciting, it still has some way to go before it can be compared to its counterparts in ERC-20 or BSC BEP-20.
Since its launch, the BRC-20 token standard has grown significantly, with over 14,000 tokens issued. Some of the most popular tokens include ORDI, PIZA, PEPE, and MEME. The popularity of these tokens highlights the potential of the BRC-20 token standard and the Ordinals protocol.
The BRC-20 network does not support smart contracts, and the price of issued tokens is almost entirely dependent on market speculation. Therefore, it is not easy to form an opinion on the future of these tokens, as their 24-hour trading volume is less than 30% of the market cap, as is currently the case with ORDI. While many crypto projects started this way, and we have seen DOGE sustain high market caps under an inflationary model with limited use cases, there is still very little room for a token category based solely on speculation. It is hard for any analyst to imagine that this rally in BRC-20 tokens will continue unless more builds with real use cases are made on the protocol.
While the BRC-20 token standard is secure and fungible, it has limitations that may limit its adoption in the long run. An important limitation is its lack of EVM compatibility. BRC-20 tokens do not support smart contracts, which limits the ecosystem and adoption. Developers cannot access or build resources on the network, which can lead to a more micro-ecosystem and limited adoption.
Another problem with BRC-20 tokens is that they consume valuable block space, causing problems such as network congestion. This can lead to increased gas fees on the network, making it more expensive to transfer tokens. However, the security of the Bitcoin blockchain is top-notch, and its PoW mechanism makes it difficult for hackers to penetrate, ensuring users enjoy the best experience of transferring coins on the blockchain.
The introduction of BRC-20 and Ordinals will eventually pave the way for more possibilities of Layer1 blockchains. While the space is still exciting, it still has some way to go before it can be compared to its counterparts in ERC-20 or BSC BEP-20.