• BRC-20 tokens, powered by Ordinals, have reached a combined market cap of $912 million.
• On Monday 8th May, the collective market cap of all BRC-20 tokens nicked the billion-dollar mark for a short while.
• With BRC-20 enabling asset creation on Bitcoin, new memecoins have also found their way to swarming the network.
BRC-20 Tokens Explode Into a $1B Market Cap
The popularity and success of Ordinals and BRC-20 tokens is continuing to break records with their combined market cap reaching $912 million at press time. On Monday 8th May, the collective market cap of all BRC-20 tokens nicked the billion dollar mark for a short while due to listings from exchanges such as Crypto.com and Gate.io as well as memecoin fever taking over Bitcoin.
Ordinals Revolutionize How People Use Bitcoin
Ordinals have revolutionized how people navigate and use Bitcoin despite its recent struggles with network congestion and high network fees leading to millions in total fees being accrued through registering over five million inscriptions. This has led to victory laps from Bitcoin maxis who are not in favor of Ordinals but its growth does come at a cost – Bitcoin’s stability.
Memecoins Flourish On The Network
With BRC-20 enabling asset creation on Bitcoin, new memecoins such as PEPE and MEME have been able to find their way onto the network with a collective market cap of over $60 million at press time – distinct from Ethereum’s trendy memecoin which currently holds a market cap of $775 billion according to CoinMarketCap.
Network Congestion From High Activity Levels
The surge in activity around these tokens has led to huge backlogs in transactions which caused 65% of all Bitcoin transactions on Sunday 7th May coming from BRC-20 tokens alone leading resulting in an increase in network fees and slower processing times for users trying to send funds or transact with these assets on the blockchain.
It is clear that interest in Ordinal and BRC-20 tokens will continue with no signs of slowing down anytime soon especially now that it has just broken into a one billion dollar market cap amid exchange listings as well as new memecoins appearing on the scene, however this comes at a cost given its impact on Bitcoin’s stability due to higher activity levels causing major congestion issues across the entire network