- Interest in ordinal numbers, in particular the BRC-20 tokens, is growing.
- Ordinal symbols and the BRC-20 continue to break records.
- However, the success of the Ordinals and BRC-20 comes with the demise of Bitcoin.
arrangement It revolutionized how people navigate and use bitcoin. However, given Bitcoin’s recent struggles with network and high congestion network feeBitcoin maxis, who are not in favor of Ordinals, are running triumphant periods and witnessing their demise and possible decline.
after registration More than five million inscriptions And with a backlog of $27 million in total fees, The Ordinals is unlikely to slow down. Especially now BRC-20 tokens running in the Ordinals order They are rising towards a new record market capitalization.
$1 billion worth of memes and lists
Bitcoin Request for Comment (BRC-20)a new token standard introduced by pseudonymous on-chain analyst Domo, is taking over Bitcoin. BRC-20.io The new protocol, which uses Ordinals at its core, is reported to power more than 14,000 unique tokens with a combined market value of $912 million at the time of publication.
However, on Monday, May 8, the combined market capitalization of all BRC-20 tokens crossed the $1 billion mark for a short while. the reason? Memecoin Fever and ORDI.
Crypto.com And GateORDI, two of the leading cryptocurrency exchanges, recently listed their first BRC-20 token, ORDI. This led to the asset peaking at $32.47 and taking its market capitalization to $700 million on May 9, according to CoinMarketCap.
Just a week ago, on May 1, the token was exchanged for $3.78.
but that is not all. With the BRC-20 enabling asset creation on Bitcoin, new memecoins have also found their way into the network crowd, with tokens like PEPE and MEME topping the charts.
memcoins have a collective market cap of over $60 million at the time of publication. This is because the BRC-20 PEPE symbol is distinguished from Trendy memecoin on Ethereumwhich currently has a market capitalization of $775 billion, according to CoinMarketCap.
The rise in the BRC-20 listings indicates the emerging nature of the space and the significant shift in Bitcoin. However, while the BRC-20 continues to Break records and control the ordinal spaceHowever, its growth comes at a cost – the stability of Bitcoin.
BRC-20 and network congestion
On Sunday, May 7, BRC-20 tokens accounted for more than 65% of bitcoin transactions. The sudden surge in activity has caused Bitcoin to experience a massive backlog in transactions, which has led to a massive backlog Domino effect of unprecedented problems.
Over 400,000 unconfirmed transactions flooded the Bitcoin diary pool. This led to pioneering exchanges such as Binance stops Bitcoin withdrawalsMiners are making outrageous amounts of money from transaction fees, $20 network fees are becoming the norm, transactions are waiting longer, and people are flocking to the Lightning Network.
An increase in network fees has sent ripples through the Bitcoin ecosystem, sparking rumors that the BRC-20 could be coordinated attack On the web. While the basis of the rumors remains uncertain, a recent chain of events has highlighted several core issues with bitcoin that developers could improve on.
on the flip side
- At press time, Binance has resumed Bitcoin withdrawals.
- Bitcoin’s recent network congestion issues are similar to those of Ethereum in 2018.
- Ethereum gas fees are at record levels During the ongoing memecoin mania PEPE.
Why should you bother
Bitcoin is the world’s first and most prominent blockchain network. While it has remained largely immune to network congestion in the past, it is currently struggling against BRC-20 and the Ordinals. The situation is similar to what Ethereum In 2018 and 2021, when DeFi and NFT projects plagued its network, resulting in higher gas fees and lower throughput.
While Ethereum has managed to get away from scalability problems thanks to new solutions like hashAnd Zero proofs of knowledgeAnd energetic, optimisticand more than that, it remains to be seen how Bitcoin will handle the challenges posed by the BRC-20.
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