Bitcoin Adoption Soars, Network Fees Soar As BRC-20 Tokens Take Over Leading Blockchain
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Blockchain analytics firm Glassnode says Bitcoin (BTC) adoption is exploding following the introduction of BRC-20 tokens, the leading cryptocurrency’s new experimental token standard.
Glass node says that Bitcoin’s recent surge in demand for blockspace has resulted in revenue increase for miners despite BTC being down 3.68% in the last 24 hours, trading at $27,874 at the time of writing.
“Bitcoin is experiencing extremely high demand for block space, powered by BRC-20 tokens, using text-based inscriptions and verbatim
This is an increase in income for miners, as the average fee paid per block has reached 2,905 BTC, close to previous bull peaks…
A few recent blocks have seen huge total fees of 5.87 BTC, which is approaching 94% of the block grant of 6.25 BTC.
Our mempool is currently full and clearing transactions approaching the 50sat/vbtye fee rate band.”
Glass node says BTC adoption increases with the number of non-zero addresses, or wallets holding more than 0 BTC, reaching a new all-time high (ATH).
“Bitcoin adoption continues to skyrocket as the number of non-null addresses reaches an ATH of ~46.1 million.
Comparing for growth across epochs, we notice a decrease in relative growth but an increase in absolute growth as the number of non-zero addresses continues to expand:
(red) Epoch 1: 1.3 million% (+1 million addresses)
(green) Epoch 2: 784% (+8 million addresses)
(yellow) Epoch 3: 233% (+21 million addresses)
(blue) Epoch 4: 54% (+16 million addresses)”
BRC-20 is a new experimental token standard built for Bitcoin, created by the pseudonymous chain analyst Domo.
Borrowing ETH’s “ERC-20” designation, BRC-20s use ordinals, or inscriptions embedded in Satoshis, to distribute, mint and transfer tokens. While loosely modeled after ERC-20, BRC-20 is significantly different due to the different architecture of Bitcoin’s blockchain.
Explains Domo,
“This is just a fun experimental standard that shows you can create off-chain equilibrium states with inscriptions. It should in no way be considered the standard for fungibility on Bitcoin with ordinals, as I think there are almost certainly better design choices and optimization improvements to be made.”
Consequently, this is an extremely dynamic experiment, and I strongly advise against making financial decisions based on the design. However, I encourage the Bitcoin community to tinker with standard designs and optimizations until a general consensus on best practices is reached (or to decide that this is a bad idea altogether!).
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