In the past few days, we have witnessed the warming of tokens belonging to the BRC-20 group.

So would BRC-20 become a tectonic plate in the Crypto market or just a fad?


BRC-20 tokens?

BRC-20 (Bitcoin Request for Comment 20) is a token created on the Bitcoin blockchain thanks to the Inscription mechanism and Ordinals protocol.

The BRC-20 standard does not support smart contracts like other token standards like ERC-20, TRC-20, etc. However, despite this limitation, BRC-20 tokens like $ORDI, $PEPE, and $PUNK are still attracting a lot of attention from the community. The total capitalization of these tokens at one point reached $1B with more than 50% of the capitalization belonging to $ORDI.


Actually, the BRC-20 token is not so new to the market. The BRC-20 tokens were created thanks to the Taproot upgrade of Bitcoin.

BRC-20 only became well-known after the meme craze from the Ethereum network. 

Impact of BRC-20

With the launch of BRC-20, the Bitcoin blockchain is seeing a significant increase in the number of transactions and transaction fees, approximately 400,000 transactions per day, a figure that was almost double when BRC-20 was not launched.

With other blockchains, the bustle of transactions on the network is a positive thing, but with the Bitcoin network, it is a disaster.

The Bitcoin network can only handle about 6-7 transactions per second. Transaction volume overload has pushed network fees (which are already high) now higher than ever.


Not only that, too many transactions make it impossible for the Bitcoin network to process. On May 7, Binance had to suspend Bitcoin withdrawals twice in less than 12 hours because of network congestion.

The above is enough to indicate that the BRC-20 is hurting the Bitcoin network more than ever. Or to be more precise, the BRC-20 token fever is having a negative impact on the most primitive network of the Crypto market, and anything that causes bad effects, goes against the nature of the market, would sooner or later be eliminated.

Please be careful before investing in BRC-20 tokens.


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