The BRC-20 token market cap has seen a 600% rise in the past week, with its transaction volume overtaking standard BTC transactions on the network.
BRC-20 is an experimental token standard for the Bitcoin blockchain, inspired by Ethereum's ERC-20. It enables developers to create and transfer fungible tokens through the Ordinals protocol.
The BRC-20 token standard on Bitcoin's blockchain has recently gained traction in the crypto world, particularly following the surge of the Pepe (PEPE) memecoin in recent months. So far, 8,500 distinct tokens have been minted using the BRC-20 standard, with a majority of them being memecoins such as PEPE and Memetic (MEME).
The BRC-20 token standard was introduced in March by an anonymous on-chain analyst named Domo. The aim was to enable the issuance and transfer of fungible tokens on the Bitcoin blockchain. Over the past month, the market cap of BRC-20 tokens has skyrocketed, currently standing at $120 million, representing a 600% increase in just the last week.The BRC-20 token craze has even overshadowed the original number of Bitcoin transactions on the blockchain. Between April 29 and May 2, BRC-20 transactions on the Bitcoin blockchain accounted for more than 50%, surpassing standard BTC transactions.
While it takes inspiration from ERC-20, BRC-20 token standard differs fundamentally from its Ethereum-based counterpart. BRC-20 tokens do not utilize smart contracts, and a Bitcoin wallet is required to mint and trade these tokens.
The BRC-20 token transaction volume reached its peak on May 1, with 366,000 transactions, while the total number of transactions on the network amounted to 2.36 million.As BRC-20 transactions have increased, so have transaction fees, primarily due to the heightened token activity. Since its emergence in late April, the network has produced an additional 109.7 BTC in transaction fees for miners.
The memecoin craze has been a prominent phenomenon on the Ethereum blockchain, and now, with the emergence of the BRC-20 standard, a similar trend is unfolding on the Bitcoin blockchain. The surge in memecoin popularity has also resulted in a substantial increase in Ethereum network gas fees, contributing to network congestion.