Meme Coin Minting Shifts To BRC-20 After Ethereum Congestion
Meme coins are transitioning to the BRC-20 standard, according to network metrics. Trends show that there is something of a BRC-20 meme coin craze on the Bitcoin network.
Meme coins, which have seen a surge in popularity in recent months, are starting to take over the Bitcoin network. These new meme coins are minted using the BRC-20 standard instead of Ethereum, since the latter is seeing congestion from the new tokens.
Daily minting fees for BRC-20 tokens reach record high
Daily coin fees on BRC-20 reached a record high of 247 BTC on May 7, as seen on Dune. The total fee for these Bitcoin Ordinals was 641 BTC. The chart shows a significant peak for these fees at the end of April, which was at the time when Bitcoin daily transactions reached an all-time high due to Ordinals.
From another perspective, Bitcoin transaction fees crossed 400 BTC on May 7, an 18-fold increase from a month ago.
BRC-20 tokens have clearly taken over the Bitcoin network and these tokens have reached a market cap of $541 million so far. There are a total of 14,079 such tokens, many of which are meme coins. This has been a major reason for the growth of Ordinals, along with NFTs.
A possible reason why meme coins are moving to BRC-20 could be because meme coins have clogged the Ethereum network. One popular meme token, PEPE, has contributed greatly to this overload. The meme coin has recently taken the community by storm, rising by around 40,000%.
Meme coins are clogging up the Bitcoin network
The popularity of Ordinals has also led Binance to stop BTC withdrawals. The exchange stopped withdrawals twice in 12 hours due to a large volume of pending transactions. The fact that these meme coins are influencing the world’s largest CEX is proof that it’s a craze at the moment.
BRC-20 tokens are fungible tokens on Bitcoin. It is an experimental token standard, although users have started flocking to it, as evidenced by its high activity.
The BRC-21 Token Standard is proposed
While BRC-20 has taken the network by storm, work is already underway on a new standard called BRC-21. The new standard was first proposed on 7 May.
BRC-21 would allow tokens on other chains to be minted and redeemed to and from the Bitcoin blockchain. The documentation describes the main use case of the BRC-21 standard as “distribution of decentralized stablecoins on the Lightning Network or similar payment protocols.”
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