The BRC-20 standard is positioned as one of the most important in recent weeks. Tokens created based on Bitcoin’s Ordinals technology have blanketed the network to such an extent that their market value now stands at $900 million.
This value demonstrates the rapid evolution of the new asset class running on the number 1 blockchain in the market.
BRC-20 standard meme tokens are taking over the bitcoin network
Considering data from brc-20.io and Ordspace websites, the Ordi meme token ranks first among cryptos in the BRC-20 category. Its fully diluted value exceeded half a billion dollars.
It has benefited from the general rise in meme tokens in recent weeks. At the time of writing this article, the token reached $25 making an incredible jump of 22,500%. Its price was $0.11 in the month of April.
The BRC-20 standard was developed for the Bitcoin network through the Ordinals protocol. In the general offer, meme tokens are the largest offer on the protocol.
BRC-20 type tokens are compatible with the ERC-20 standard which belongs to Ethereum. Thanks to its capabilities, BRC-20 makes it possible to index each satoshi which is the smallest unit of Bitcoin.
The Ordi token has a fully diluted market cap of $525 million for a total supply of 21 million tokens. It was listed by Gate.io, the first centralized exchange platform to offer to exchange the best token of the new standard.
Ordi is not the only meme token creating a stir among BRC-20 tokens. Others include Domo, Meme and Nals, whose individual market valuations range between $8 million and $20 million.
What is the Ordinals Protocol on Bitcoin?
The Ordinals protocol allows developers to provide an identity to the satoshi of the bitcoin network by facilitating transactions with additional data attached through the process called registration. Ordinals work like non-fungible tokens (NFTs). This is why it allows develop fungible tokens on the bitcoin network, hence the birth of BRC-20 tokens and NFTs.
The Ordinals protocol development team has put together a method to generate NFTs on the Bitcoin network. Another team named Domo worked at the intro of an experimental standard named BRC-20 for tokens operating on the Ordinals protocol. This standard went live in March and enabled the issuance of fungible tokens like the Ordi token on satoshis using specific file registration.
Since its introduction, the new standard has seen an explosion in the number of tokens created through Ordinals. More than 11,000 tokens have already emerged on the network, increasing daily transactions on the bitcoin network which reached 534,000, a record. It is also for this reason that transaction fees have skyrocketed.