Bitcoin, the pioneer of cryptocurrencies, is grappling with a rise in congestion as the popularity of BRC-20 tokens reaches new highs. The overloaded network is experiencing a backlog of more than 280,000 unconfirmed transactions, resulting in increased transaction times and costs for users and traders. Meanwhile, ORDI and various BRC-20 coins continue to soar. Here are the details…
Bitcoin network under pressure
According to data from Mempool.space, the Bitcoin network’s mempool has exceeded 300 MB and reached 1.57 GB, indicating a significant strain on the system. Mempool acts as Bitcoin’s “waiting area” for transactions. Additionally, its current status reflects the impact of the increasing popularity of BRC-20 tokens. As the mempool fills, nodes prioritize transactions based on transaction fees. So this causes the costs for real transactions to increase. Currently, transaction fees range from $14 to $16.50 depending on priority.
Meanwhile, Dune Analytics reported a significant increase in BRC-20 minting, exceeding 450,000 per day. As we reported at Kriptokoin.com, the BRC-20 token standard uses sequence scripts that allow fungible tokens to be minted and transferred on the Bitcoin Blockchain. This increase in activity comes with the rise of coins like ORDI. It also reflects a similar trend from earlier this year. It also points to a recurring challenge for the network.
ORDI leads the pack
Ordinals (ORDI) BRC-20 token has emerged as a pioneer, reaching a market cap of over $1 billion. This milestone makes ORDI the first of its kind to achieve such a mark. With a staggering 700 percent increase last month, ORDI’s price rose to an all-time high of $65.18. Thus, the coin strengthened its position in the cryptocurrency market. Stacks, a protocol built on Bitcoin, also experienced a significant increase. Additionally, STX prices increased by 50 percent last week and were currently trading at $1.15.
The remarkable rise of ORDI coin is attributed to its recent listing on Binance, a major cryptocurrency exchange. Following the listing, ORDI’s value increased by over 700%. Thus, it reached a market value of 1.3 billion dollars. The token’s trading volume increased by 12.77%, indicating that the upward trend continues. Meanwhile, the largest BRC-20 coins by market cap are trending upward as follows:
Looking ahead: What to expect at the price?
On the 4-hour chart, ORDI is showing strong bullish indicators. Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicate that the bullish momentum will continue in the coming hours. This positive market sentiment reflects growing investor interest in BRC-20 tokens. It also potentially paves the way for more tokens to come to the fore in the cryptocurrency space. As the Bitcoin network grapples with congestion, the cryptocurrency community will be closely watching how it overcomes these challenges and adapts to the evolving landscape of token standards such as BRC-20.
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