Bitcoin Request for Comment (BRC-20) Token Market Value Hits $137 Million, Up 600% in One Week

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Interest in “Bitcoin Request for Comment” or BRC-20 tokens built with ordinals and stored on the Bitcoin base chain has skyrocketed, increasing their market value by hundreds of percent.

At the time of writing, the combined market capitalization of over 8,800 BRC-20 tokens was $137 million, a staggering 682% increase from the $17.5 million seen a week ago, according to data tracked by Ordinals-builder Ordspace. (For a brief moment on Tuesday morning, the website showed the total market capitalization at $2.93 billion. Ordspace said the figure was not accurate and was likely a result of low liquidity in some of the tokens.)

A pseudonymous on-chain analyst named Domo created the BRC-20 token standard in early March to facilitate the issuance and transfer of fungible tokens on the Bitcoin blockchain. The experimental invention came weeks after the Ordinals protocol went live, allowing users to inscribe digital art references into small transactions on the Bitcoin blockchain.

“Ordinals on Bitcoin have had unintended consequences. Among these is the invention of the fungible token standard BRC-20. It is now possible to create fungible tokens on BT,” said the pseudonymous analyst and producer Dynamo DeFi yield report in the latest edition of the weekly newsletter. . “Since inception, BRC-20s have accounted for nearly 6% of all Bitcoin activity.”

The BRC-20 standard is similar to the popular ERC-20 standard, but the two are different, with the former lacking the ability to interact with smart contracts. ERC-20 is the technical standard for fungible tokens created using Ethereum, the first smart contract blockchain.

“This[BRC-20] is not a token standard like you are used to with EVM chains, which create smart contracts that manage the token standard and its various rules. Instead, it’s simply a way to store a bitcoin script file and use it to assign tokens to satoshis and then allow them to be transferred between users,” the crypto exchange said. Binance in an explainer.

Most active BRC-20 tokens fall into meme coin cryptocurrencies from an internet meme or humorous feature. At press time, the top three coins minted to the BRC-20 standard were ORDI, OG, and PEPE.

According to Mark Jeffrey of Boolean Fund, the launch of BRC-20 tokens eliminated the need for crypto exchanges.

“With the BRC-20s, the Bitcoin blockchain is the exchange. There is no Binance, no Coinbase required. Just a Bitcoin wallet. You create, buy and sell with sats. Bitcoin is now gas” , tweeted Jeffrey over the weekend, noting the increase in market capitalization of BRC-20 tokens.

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