The Memecoin Craze: How BRC-20 Tokens Are Making Their Mark on the Bitcoin Blockchain

Although memecoins have been aroundfor years on the Ethereum blockchain (Dogecoin was launched in December 2013), the Bitcoin blockchain is now experiencing a similar trend, thanks to the BRC-20 token standard.

In this article, we’ll explore the memecoin craze on the Bitcoin blockchain and discuss how BRC-20 tokens are shaping the crypto ecosystem.

What are BRC-20 Tokens? The BRC-20 token standard is an experimental token standard on the Bitcoin blockchain, modeled after Ethereum’s ERC-20. Created in March by an anonymous on-chain analyst called Domo (“@domdata” on Twitter), the BRC-20 token standard allows programmers to create and send fungible tokens via the Ordinals protocol.

Unlike ERC-20 tokens, BRC-20 tokens do not make use of smart contracts and require a Bitcoin wallet to mint and trade these tokens.

The BRC-20 token standard has witnessed explosive growth in recent months, particularly with the advent of memecoins like Pepe (PEPE) and Memetic (MEME). In just four days, the BRC-20 token market capitalization skyrocketed from $95 million to $279 million, with more than 13,530 tokens in circulation.

According to a report by Bitcoi News published earlier today, the top five BRC-20 tokens, namely ordi, pepe, piza, meme, and moon, account for 86.55% of the total market capitalization. The BRC-20 memecoin frenzy has even outperformed the original number of Bitcoin transactions, with BRC-20 transactions reaching over 50% between April 29 and May 2.

The rapid growth of BRC-20 memecoins has had a significant impact on the Bitcoin ecosystem.

As of 8 May 2023, Bitcoin miners have earned 111.25 BTC from the BRC-20 ecosystem.

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