BRC-20 tokens are a new type of cryptocurrency that can be created and traded on the Bitcoin blockchain.
Total Market Cap of BRC-20 Tokens Nears $1 Billion
BRC-20 tokens are a new type of cryptocurrency that can be created and traded on the Bitcoin blockchain. They are inspired by the ERC-20 standard on Ethereum, but they use a different protocol called Ordinals to inscribe data on satoshis, the smallest unit of Bitcoin. BRC-20 tokens are fungible, meaning they can be exchanged for other tokens of the same type.
The BRC-20 market has grown rapidly since its launch in March 2023 by an anonymous developer named Domo. The first and most popular BRC-20 token is ORDI, which started as a meme but now has a market cap of over $500 million. Other BRC-20 tokens include VMPX, MEME, BANKBRC, and PEPEBRC, which have been listed on Gate.io, the first exchange to support BRC-20 trading.
Going forward, Ordinals and BRC-20 tokens face some challenges, such as limited functionality compared to ERC-20 tokens and high network congestion and fees due to the increased demand for Bitcoin transactions. Additionally, many Bitcoin proponents do not like the idea of Ordinals increasing the cost of using bitcoin for its original purpose as digital cash.
