A new class of tokens, BRC-20, has emerged on the basis of the bitcoin blockchain
Its popularity indicates interest in bitcoin not only as a means of payment but also as a basis for the development of new cryptocurrencies
The situation around the bitcoin blockchain is heating up. According to Glassnode, daily transactions in May reached an all-time high of 682,000, which is almost 40% higher than the previous peak reached in 2017. The dominance of bitcoin, or in other words, its share in the total cryptocurrency market of $1.16 trillion, increased to 44% from 38% at the beginning of the year.
Source. This was reported by Reuters.
BRC-20 has appeared – a new class of tokens on the bitcoin blockchain in addition to bitcoin itself. In 2023, about 25,000 experimental coins have already been minted, resulting in a huge number of transactions.
"BRC-20 tokens are a phenomenon we've never seen before," said Gordon Grant of Genesis.
Primarily due to the creation of these tokens, the average daily transaction volume for seven days was more than 531,000 – almost double the amount of a month ago, according to Blockchain.com.
This new class of cryptocurrencies has no specific use other than speculation, similar to meme coins. However, its popularity indicates interest in bitcoin not only as a store of value or means of payment, but also as a basis for the development of new cryptocurrencies and applications, which was previously considered the domain of more modern blockchains such as ethereum and solanum.
However, the hype around BRC-20 was not sustainable.
The total value of these tokens, which are typically traded on secondary markets, including decentralized exchanges, exceeded $1 billion in early May, but has since fallen to $446 million, according to the BRC-20.io tracker.
This is because the bitcoin blockchain was not originally designed to support the crypto ecosystem.
The race to create new crypto coins has not had a significant impact on the price of bitcoin, which has been trading below $30,000 since mid-April.
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