The world of cryptocurrencies is never boring. A recent post by DeFi researcher DefiIgnas highlights just how weird things can get. The researcher reveals the trading situation of BRC-20 coins and the challenges that come with it.
The strange world of trading BRC-20 coins!
First, he states that the total trading volume for all Bitcoin Ordinals is $60 million, with UniSat Marketplace dominating with 75%+ market share. But secondly, to access the market for BRC-20 coins, you first need to print 20 inscriptions, i.e. create a BRC-20 shitcoin to buy another meme-coin. This creates a funny situation that is actually not funny at all.
Third, he explains how these transactions clog blockchains, increase the rank percentage on the charts, and cause transaction fees to soar. There are currently 450,000 unconfirmed Bitcoin transactions. Fourth, he reveals that spending 20 minutes on UniSat costs $430, which is the price of being an early adopter.
https://twitter.com/DefiIgnas/status/1655442232349196288
In the fifth post, he points out that despite the difficulties, people do this because prices have risen. The total market cap of BRC-20 coins is currently $542 million. This proves that there is money to be made for those browsing the market. In the sixth post, he says that ORDI, a BRC-20 coin making 27ox, is now listed on Gate. Thus, he states that it makes gambling so much easier! It also asks if other centralized exchanges will follow suit. Finally, he concludes by saying that it is exciting to try and learn something new. It also makes the Bitcoin Blockchain more secure by increasing the fees earned by Bitcoin miners. But the Bitcoin community is divided on the issue.
There are even 270x among BRC-20 coins!
Meme-coins like PEPE, AIDOGE and WOJAK have become increasingly popular in recent weeks. It is now causing traffic congestion on the Ethereum network with new BRC-20 coins affecting the Bitcoin network. Meme-coins have taken the crypto world by storm and these new coins are minted using the BRC-20 standard. However, daily printing fees in the BRC-20 standard reached a record high of 247 BTC on May 7, according to Dune’s data.
The total fee for these Bitcoin orders was 641 BTC. Meanwhile, from a different perspective, transaction fees on Bitcoin exceeded 400 BTC on May 7, increasing 18 times compared to the previous month.
Source: Dune AnalyticsBRC-20 coins have taken over the Bitcoin network with a market cap of $541 million to date. There are a total of 14,079 BRC-20 tokens, including many meme-coins. For example, ORDI, one of them, rose 270 times to $27. The main difference here is that you do not need to buy ORDI from the stock market. Because you only have the opportunity to print by paying a fee. However, this also has some limitations.
BRC-20 coinsThe popularity of meme coins and the rise of the BRC-20
According to experts, one reason meme-coins have shifted to BRC-20 may be that meme-coins are causing congestion on the Ethereum network. PEPE, a popular meme token, has contributed significantly to this congestion. Recently, the meme-coin community has taken over and is up by about 40,000%.
This rise in popularity of meme coins has caused concern among some crypto enthusiasts who are concerned about the potential negative impact on the overall crypto market. But others argue that the growth of these tokens reflects the growing demand for new and exciting forms of cryptoassets. It is not yet clear how this trend will develop in the coming months. But one thing is certain! The rise of meme-coins and BRC-20 tokens left an indelible mark on the crypto world.
Probably the world of cryptocurrencies is strange and confusing. But for those who can figure it out, it’s clear there’s money to be made. As the market continues to evolve, we will likely see even more bizarre trading practices emerge. For now, investors will have to overcome the challenges posed by BRC-20 coins and hope that the rewards outweigh the costs.
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