The total market capitalization of BRC-20 Bitcoin tokens recently reached a significant milestone, surpassing the $1 billion mark on May 9, with a trading volume of $207.7 million in 24 hours. Among the most noteworthy tokens deployed under this standard are ordi, nals, VMPX, pepe, and meme, exhibiting price variances between +11% and -55% within a single day.
Analysts at the multi-chain wallet BitKeep explained that BRC-20 tokens represent a novel form of fungible token that makes use of Ordinals and Inscriptions to handle an assortment of functions, such as creating and managing token contracts, minting tokens, and managing token transfers. All these processes are stored on the Bitcoin base chain. To clarify, Ordinals is a numbering system that gives every satoshi, or one hundred millionth of a Bitcoin, a unique number that makes it easy to track and transfer. The ‘inscription’ process, on the other hand, adds a data layer to each satoshi, thus enabling users to generate distinct digital assets on the Bitcoin blockchain.
The creation of the BRC-20 token standard is attributed to Twitter user domodata on March 8. At present, over 14,000 BRC-20 tokens have been deployed on the Bitcoin network, dwarfed by the estimated 400 million tokens on Ethereum. Yet, this rapid growth of BRC-20 tokens has not been without skepticism.
Critics argue that the BRC-20 standard is not only a “worthless” experiment, but its creator has also explicitly cautioned users against wasting money on mass minting these tokens. This sentiment was echoed in a tweet stating, “1. These will be worthless. Please do not waste money mass minting. 2. Due to how some inscription tools are set up, the ‘balance’ may be minted to the intermediary address used in…” in reference to the BRC-20 tokens.
Regardless of these warnings, the explosive growth of BRC-20 in such a short period demonstrates that there is significant interest and potential for innovation within the digital asset space. Nevertheless, as with any new technology, some concerns remain to be addressed to ensure long-term stability and success.
In conclusion, while the rapid increase in the deployment of BRC-20 tokens on the Bitcoin blockchain offers an intriguing addition to digital assets and their potential applications, their creator’s warning serves as a reminder to approach such experiments with caution. Although the market appears to be embracing this new token standard, it is essential for those interested in the blockchain and cryptocurrency space to weigh the potential benefits and risks before investing their resources.
Source: Cointelegraph
