BRC-20 tokens have been on the agenda for the last few weeks as they are the latest development as a result of Ordinal focused innovations. Binance Research has recently published a report to inform the enthusiasts of the BRC-20 tokens, which are busy on the agenda.
BRC-20, an experimental token standard conceptualized in March 2023, makes it possible to distribute, print and transfer exchangeable tokens on the Bitcoin blockchain. This latest innovation means non-fungible tokens (NFT) as well as exchangeable tokens are becoming a part of the Bitcoin ecosystem. The report stated that the total market value of these tokens exceeded $1 billion in early May.
Also, the leading BRC-20 token, ORDI, was listed on several exchanges. The first token contract was made for ORDI tokens with a limited minted 1K token and 21M max supply as a tribute to Bitcoin’s maximum supply. While this launch created excitement in a sub-sector of the Bitcoin community, all 21M ORDI tokens were minted in a short time. It didn’t take long for other tokens like MEME, PEPE and PUNK to emerge after this exciting entry.
In its report, Binance shared the origins of BRC-20, current market outlook, comparison with ERC-20 tokens, impact on Bitcoin’s metrics, potential risks, and future insights. The report noted that this market is still in its early stages, given that the BRC-20 was conceptualized only a few months ago, and Ordinal and Inscriptions are less than six months old.
Emphasizing that there are more than 18 thousand BRC-20 tokens and the total market value exceeds 500 million dollars as of May 16, 2023, it was stated in the report that the market value approached 1 billion dollars in the first days of May, but the market aimed to find a more stable balance by correcting itself. In the report, it was stated that BRC-20 tokens involve risks in the early stage of the market and that more infrastructure support is needed, while emphasizing that this is an experiment and the potential risks should be carefully examined.