The BRC-20 tokens, a token standard on the Bitcoin blockchain, have witnessed an unprecedented resurgence in trading volume and price in the past few weeks. This resurgence is largely driven by the craze surrounding the Inscription, a novel way of storing and transferring data on the Bitcoin network.
Inscription, a platform introduced in April 2023, provides the functionality for users to incorporate various types of data, including text, images, audio, video, and code, into Bitcoin transactions. This feature enhances the versatility and utility of Bitcoin transactions.
These data can then be retrieved and verified by anyone using the Inscription protocol. Users can also create and trade digital collectibles, such as art, music, or memes, using Inscription.
Inscriptions Hit a Massive Milestone
Inscription’s popularity has seen a remarkable surge recently, culminating in a record-breaking event on November 12, 2023. On this day, the platform recorded over 500,000 inscriptions, a single-day volume that surpasses any previous record in the ongoing wave of Inscription usage. This significant achievement has propelled the total number of inscriptions to exceed 40 million.
According to Glassnode, the proportion of total transactions associated with Inscription files came close to reaching a staggering 70%, indicating that the recent transaction surge is predominantly driven by Inscription activities.
The demand for Inscription has also boosted the value of BRC-20 tokens, which are used to pay for the fees of Inscription transactions. The BRC-20 ecosystem, consisting collectively of 214 tokens, currently nears an impressive market cap of $1.5 billion, according to market data.
Among the various tokens, Ordinals distinguishes itself with the highest market capitalization, currently valued at $460 million. The price of a single Ordinals token is $21, nearing its record peak of $29.
The BRC-20 tokens, which were first introduced in 2018, are a token standard that allows anyone to create and issue their own tokens on the Bitcoin blockchain, similar to ERC-20 tokens on Ethereum.
The BRC-20 tokens can be used for various purposes, such as crowdfunding, loyalty programs, gaming, or decentralized applications. The BRC-20 tokens are compatible with the Inscription protocol, which means that they can also store and transfer any kind of data on the Bitcoin network.
The Bitcoin blockchain, often recognized for its role as a store of value or a medium of exchange, also has a wide range of other uses. This is exemplified by the BRC-20 tokens and the Inscription protocol, which highlight the versatility and potential of the Bitcoin blockchain in various applications.
They demonstrate the potential of Bitcoin as a platform for innovation and creativity, as well as a catalyst for the development of the decentralized web.