Token transaction volume on the Bitcoin network surpassed regular Bitcoin transaction volume in 2 days.
Bitcoin-based tokens are largely a new phenomenon. The first is Ordinals – a project that issues NFTs on Bitcoin. The principles behind it were used to create a standard for tokens on Bitcoin known as BRC-20. This standard is used to issue tokens such as ORDI, PEPE, MEME, etc. Now, these tokens are growing and driving a lot of activity on the network.
“To date, more than 8,500 different tokens have been minted. Part of the novelty of BRC-20 lies in the security on the Bitcoin blockchain. The communities formed around these tokens have common incentives, and everyone has fair The minting opportunity. Despite the technical flaws and meme-centric nature, it is currently continuing to grow,” said trader and analyst Crypto Koryo explain on twitter.
The BRC-20 standard allows anyone to issue NFTs and fungible tokens on Bitcoin relying on bits of metadata added to each satoshi (the smallest unit of Bitcoin).
From April 29 to May 2, token transactions involving the use of BRC-20 (the standard used for bitcoin-based tokens) accounted for 42-54% of all transactions on the bitcoin blockchain. This does not include Bitcoin transactions made on the Lightning Network.
According to data from Cointelegraph, on May 1, the highest proportion of Bitcoin block space dedicated to BRC-20 tokens reached 53.7%. data By Encrypt Goryeo.
Bitcoin Transaction Percentage | Source: Crypto Koryo
As the percentage of BRC-20 transactions increases, so do the fees incurred by the token standard.
BRC-20 fees have grown parabolicly since late April, peaking at around 27.73 BTC yesterday. In total, these tokens generated more than 100 BTC in fees (approximately $2.8 million) for the miners, helping them boost their income.
cost bitcoin transaction | Source: Crypto Koryo
On April 29, the number of daily transactions on the Bitcoin blockchain hit an all-time high, tracked by the 7-day moving average. The on-chain metric hit an all-time high of over 408,000 transactions at the time and continued to climb to nearly 500,000 on May 1, largely due to increased demand for memecoins.
Number of transactions on the Bitcoin network | Source: The Block
While memecoin transactions are new to Bitcoin, it happens every day on most, if not all, other blockchains. Recently, a token also known as PEPE has grown on Ethereum and increased its market cap to $500 million in just two weeks, raising the question of whether memecoin transactions are the crypto killer app after all program.
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Mingying
According to the block
