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Edited by Kapil334 at 22-12-2023 05:21 AM
Recently, benefiting from the resurgence of the Ordinals protocol, the average transaction fees for Bitcoin have once again surpassed Ethereum, a trend not seen in six months. Upon closer examination of the successive surges in BRC-20 tokens, it becomes apparent that most tokens in this market belong to meme coins. These tokens are characterized by their small scale, lack of practical utility, and significant volatility. While this volatility can lead to substantial returns, it also poses a high risk of significant losses.
Bitcoin transaction fees lead Ethereum:
According to BitInfoChart data, the average daily transaction fees for Bitcoin reached a six-month high on November 18, soaring to $18.67, compared to Ethereum's $7.99. The fees for the former even increased sevenfold within a month. Although both have since dropped to $10.34 and $8.42, respectively, Bitcoin still maintains higher network fees than Ethereum.
The community widely attributes this phenomenon to the renewed attention around the Ordinals protocol, particularly after the cryptocurrency exchange Binance announced the listing of the $ORDI trading pair, sparking a market frenzy.
A few days ago, Taproot Wizards, a new startup focused on Bitcoin Ordinals, even attracted the interest of venture capital firms, claiming to have raised $7.5 million in seed funding.
Rapid resurgence of the Ordinals market:
Reviewing the current state of the Ordinals market, Dune data indicates that the recent growth comes after several months of relatively low trading volume and transactions in the market. Interestingly, in terms of market share based on transaction volume, the cryptocurrency exchanges Unisat and Magic Aden, which previously dominated the market in May, have gradually been overtaken by OKX, actively positioning itself in the Ordinals market. Currently, OKX holds a staggering 90% market share.
Previously reported, the Ordinals protocol, known as ""Bitcoin-based NFTs,"" successfully debuted in February of this year. The subsequent rapid rise in popularity, along with the emergence of thousands of BRC-20 tokens, has brought both praise and controversy to the protocol.
Despite the heat in the BRC-20 market, it remains dominated by meme speculation:
Due to the embrace of BRC-20 tokens based on the Ordinals protocol by major centralized exchanges (CEX), it has further facilitated broader market liquidity, leading to a surge in the prices of Bitcoin ecosystem-related tokens.
CoinCarp data shows that among the top ten tokens by market capitalization in this market, six tokens have experienced price fluctuations of over 20% in the past seven days. Not to mention other tokens that have skyrocketed or experienced significant price drops, indicating a very high level of risk.
Upon deeper exploration, it becomes evident that almost all current BRC-20 tokens are Memecoins with no specific or practical utility. Additionally, market enthusiasm is excessively concentrated on certain tokens, and most tokens have a relatively small market capitalization with significant volatility. |
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Post time 26-11-2023 20:43:18