May 11 (Bloomberg) -- BRC-20 is growing in popularity because of the recent Meme coin boom, according to a new report from Bitfinex Alpha. The data shows that the BRC-20 token market cap has reached $85,887,754,661. Since its launch, the BRC-20 token standard has grown significantly, with over 14,000 tokens issued. Some of the most popular tokens include ORDI, PIZA, PEPE and MEME. the popularity of these tokens highlights the potential of the BRC-20 token standard and the Ordinals protocol. the BRC-20 network does not support smart contracts and the prices of the tokens issued are almost entirely dependent on market speculation.
As a result, forming an opinion on the future of these tokens is not easy, as their 24-hour trading volume is less than 30% of market cap, as is currently the case with ORDI. While many crypto projects started out this way, and we have seen DOGE maintain a high market cap with a limited use case inflation model, there is still little room for a token category based solely on speculation. It is hard for any analyst to imagine this rally in the BRC-20 token lasting unless more builds with real use cases are done on the protocol. While the BRC-20 token standard is secure and alternative, it has a number of setbacks that may limit its adoption in the long run. One important limitation is its lack of EVM compatibility. the BRC-20 token does not support smart contracts, which limits the ecosystem and adoption. Developers cannot access or build resources on the network, which can lead to a more micro ecosystem and limited adoption. another issue with BRC-20 tokens is that they consume valuable block space, causing problems such as network congestion. This can lead to increased Gas fees on the network, making it more expensive to transfer tokens.
However, the security of the Bitcoin blockchain is top-notch, and its PoW mechanism makes it difficult for hackers to penetrate, ensuring that users enjoy the best experience of transferring tokens on the blockchain. the introduction of BRC-20 and Ordinals will eventually pave the way for more possibilities on the Layer1 blockchain. While the space remains exciting, it still has a ways to go before it can match its counterparts in ERC-20 or BSC BEP-20.
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