BRC-20 Tokens Boost Bitcoin Ecosystem: Miner Earnings Soar and Community Demand Grows Despite High Transaction Costs
Summary:
The Bitcoin ecosystem has seen resurgence with the market cap of BRC-20 tokens increasing rapidly since their introduction in January. According to a research study by Bitget, Bitcoin miners' earnings have grown significantly, with daily mining earnings exceeding $40 million in November. BRC-20 tokens, introduced by developer Casey Rodarmor, represent a major technological advancement in blockchain technology, allowing users to mint unique digital assets on the Bitcoin blockchain. Despite high transaction costs, there is strong community demand for minting BRC-20 tokens. By 2024, second-layer solutions like the Lightning Network are predicted to support wider adoption of Bitcoin payments.
The Bitcoin universe is experiencing an impressive resurgence, with the market capitalization of BRC-20 tokens exceeding $4 billion soon after their introduction in January. As per Bitget’s cryptocurrency market research report dated December 15, Bitcoin miners' earnings from transaction fees have experienced a considerable rise, increasing from 1.7% in August to 19.57% in November. Furthermore, November saw daily mining earnings from block rewards exceed $40 million. The flagship digital currency has grown by 161% since the beginning of the year.
BRC-20 tokens were created in January by Casey Rodarmor, a Bitcoin developer. These tokens quickly became popular, representing one of the most significant technological developments in the 15-year lifespan of the blockchain. Bitcoin Ordinals is a unique numbering system that provides each satoshi – a unit representing one hundred millionth of a Bitcoin – with a distinctive number, facilitating tracking and transfer. When paired with the inscription process, which layers data onto each satoshi, users can produce distinctive digital assets on the Bitcoin blockchain.
The Ordinals token, ORDI, is the first memecoin minted using the BRC-20 model, but it is unrelated to the Ordinals mechanism itself. Presently, ORDI has a market cap of $1.34 billion. In addition, researchers have mentioned other Bitcoin token models, like ARC-20 from Atomicals Protocol, that are contributing to the Bitcoin ecosystem. Unlike Ordinals, the Atomicals protocol's ARC-20 model uses Bitcoin’s smallest unit, the satoshi, as the smallest unit for assigning assets. This allows a comprehensive transfer history without reliance on third-party sorters.
The current offerings from the Atomical Protocol include ARC-20 tokens, non-fungible tokens, Bitcoin domain names (or "realms"), and on-chain data storage objects referred to as "Collection Containers". Up to now, 366,879 mints have been performed on the Atomicals Protocol, amounting to a cumulative cost of 55.8 BTC ($2.4 million). The total minting activity on this protocol constitutes 2.69% of all minting on Ordinals.
Despite high transaction costs, a substantial demand exists within the community to mint BRC-20 tokens. The Sats memecoin (SATS) was fully minted by September 24, with 21,107,258 mints and 36,061 holders, despite the transaction fees being above $15 million. Researchers predict that second-layer solutions, such as the Lightning Network, will be an essential technological backbone for the wider adoption of Bitcoin payments by 2024.
Related: Why are Bitcoin prices reaching new highs in Turkey, Egypt, Nigeria and Argentina?
Published At
12/15/2023 3:00:00 PM
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