coinspress.com
The value of tokens generated on the Bitcoin network using the Ordinals protocol has surpassed $900 million, indicating the rapid growth of a new type of asset within the valuable blockchain.
The Ordi meme coin is leading the BRC-20 category, with a total estimated value exceeding $500 million, based on data from brc-20.io and Ordspace. Its value has experienced an astronomical surge of 22,500% since the start of April, surging from $0.11 to $25, driven by the current trend of meme coins.
Most tokens developed using the BRC-20 standard on the Bitcoin network are meme coins, similar to the ERC-20 tokens found on the Ethereum blockchain. Invented by Casey Rodarmor in January, the Ordinals protocol enables the indexing and monitoring of every satoshi, representing the smallest Bitcoin unit, across the entire network.
Presently, Ordi possesses a fully diluted market capitalization of $525 million, with a token supply of 21 million. It recently became available for trading on Gate.io, marking the first time a centralized cryptocurrency exchange has listed this prominent BRC-20 token.
📣 #Gateio New Listing: $ORDI
🔸Trading Pair: $ORDI/ $USDT
🔸Trading Starts: 02:00 AM, May 8 (UTC)Trade: https://t.co/ExBA5etVlI
Deposit: https://t.co/HfIxOcAgMLMore: https://t.co/2RcrH9D77F pic.twitter.com/mPx63DTwnw
— Gate.io (@gate_io) May 7, 2023
Other meme assets on Bitcoin, such as Meme, Domo, and Nals, trail behind Ordi in the BRC-20 market segment, with individual market caps ranging from $8 million to $20 million.
What is the Ordinals protocol on Bitcoin? The Ordinals protocol enables developers to uniquely identify and assign files to every satoshi within the Bitcoin network, a process known as inscription.
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This mechanism laid the foundation for the creation of both fungible tokens, like BRC-20 tokens, and non-fungible tokens (NFTs), often used to showcase digital artwork.
While the core Ordinals team developed a method for generating NFTs on Bitcoin, another developer known as Domo introduced an experimental token standard called BRC-20 in March.
An experiment into "brc-20's" and fungibility on bitcoin with ordinals 1/x pic.twitter.com/9khKLbEPk6
— domo (@domodata) March 9, 2023
The implementation of the Ordinals protocol enables the creation of fungible tokens like Ordi by linking particular files with satoshis. As a result, there has been a notable growth in the number of tokens produced on the Bitcoin network utilizing the Ordinals protocol.
Within a short span of time, more than 11,000 tokens have been generated, leading to a significant increase in daily transactions on the Bitcoin network. According to a report by The Block, the network witnessed a record-breaking high of 534,000 transactions. Consequently, network fees have experienced a substantial surge in the past week.