The Bitcoin network has been ‘stagnant’ over the past few days as record high fees and tens of thousands of unconfirmed transactions have poured into the network. A new development that will further tire the network is the BRC-20 tokens, which Binance NFT has opened its list…
Binance NFT announces support for Bitcoin Ordinals
In a recent announcement, Binance announced that it will support Bitcoin Ordinals (Bitcoin NFT) transactions on its NFT Marketplace platform at the end of May. Since then, several tokens on the Bitcoin network have been rallying, including Ordinals (ORDI), Bank, and Pisa.
Especially Ordinals (ORDI) are at the forefront with over 50% gain in a short time. Bank (BANK) and Pisa (PIZA) grew by 25% and 20%, respectively.
With Binance’s announcement, users will be able to buy and sell Bitcoin-NFTs directly on the exchange without the need for a separate Bitcoin wallet. Previously, Binance’s NFT Marketplace platform was integrated with other networks such as BNB Chain, Ethereum, and Polygon.
BRC-20 tokens are also in high demand
Aside from the interest surrounding Bitcoin Ordinals, the crypto market has witnessed a rally in BRC-20 tokens in recent days. According to data from OrdSpace, more than 11,750 tokens have been issued on the Bitcoin network. The total market capitalization of BRC-20 tokens has reached approximately $700 million.
BRC-20 tokens, Bitcoin network
As Kriptokoin.com reported, it became possible to print tokens on the Bitcoin Blockchain with the BRC-20 standard. As a result, the average transaction fee on the Bitcoin network has exceeded $16, accompanied by high demand. At one point it climbed as high as $29. This makes it increasingly difficult for users to transact on the network.
The reason behind this is the growing popularity of meme coins based on the BRC-20 standard. BRC-20 is an experimental token standard for Bitcoin developed using the Bitcoin Ordinals protocol. Unlike traditional token standards like Ethereum’s ERC-20, the BRC-20 does not use smart contracts. It also only works with wallets that support Bitcoin.
The BRC-20 standard was designed to facilitate the production of NFTs on Bitcoin. This feature has led to an influx of unconfirmed transactions that have crushed the Bitcoin network. In particular, it has caused major exchanges like Binance to have to suspend BTC withdrawals twice due to the volume of incomplete transactions.
In summary, the BRC-20 standard is revolutionary for Bitcoin and Blockchain technology. However, these new and mostly meme tokens produced on Bitcoin lead to unwanted spam attacks. Some experts expect developers to address this issue with spam protection soon.
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