Meme tokens have been on positive momentum for the past few weeks. According to data from the Bitcoin network, meme tokens are said to be tying up to the BRC-20 standard and are gradually taking over the Bitcoin network.
Indeed, data from the Bitcoin network shows that crypto meme projects now prefer to peg to the BRC-20 standard instead of the ERC-20 standard.
This new trend is explained by the fact that the Ethereum network is experiencing congestion caused by the constant arrival of new tokens.
Daily BRC-20 Token Minting Fees Reach All-Time High
According to data from Dune, daily minting fees on BRC-20 were valued at 247 BTC on May 7th. Ordinal minting fees peaked recently with a total of 641 BTC, indicating an all-time high in daily Bitcoin transactions.
On May 7, the overall Bitcoin transaction fee reached 400 BTC, which was an 18x increase from the previous month’s fee.
All this indicates that BRC-20 tokens largely dominate the Bitcoin network. Currently, there are 14,079 tokens in this category with a market capitalization of $541 million. Most of these cryptos are actually meme tokens. This explains the growth of ordinals.
If meme tokens are now choosing the BRC-20 standard, it is because of the congestion of the Ethereum network caused by popular meme tokens of the PEPE type. This crypto meme that just hit the market has already achieved a increase of around 40,000%. Thanks to its presence and that of the other successful meme tokens, the Ethereum network is saturated.
Meme tokens are clogging the Bitcoin network
The popularity of meme tokens and the large number of transactions have forced Binance to stop BTC withdrawals recently. Indeed, the crypto exchange effectively halted all withdrawal activity twice in a 12-hour period due to a large volume of pending trades.
If the number of transactions hits the largest centralized exchange in the world, it means that meme tokens are enjoying a very serious craze at the moment.
let’s remember that BRC-20 tokens are fungible tokens based on the bitcoin network. This new standard is experimental to compete with Ethereum’s ERC-20 standard. Although it is still new, users have started to soak up this standard and are adopting it as evidenced by the reports.
Given the success of BRC-20, developers are already working on the next standard, BRC-21. It was first mooted on May 7 and should allow other tokens to be minted and exchanged to and from the Bitcoin blockchain. The new standard should enable the deployment of decentralized stable tokens on the Lightning Network or similar payment protocols.