BRC-20 Tokens Gain Momentum on Bitcoin Base Chain, Market Cap Surges.
In recent days, there has been a significant surge of interest in Bitcoin Request for Comment (BRC-20) tokens built with Ordinals and stored on the Bitcoin base chain. This newfound attention has resulted in a remarkable increase in their market value by several hundred percent. According to data tracked by Ordinals-builder Ordspace, the combined market cap of over 8,800 BRC-20 tokens now stands at $137 million. This astonishing rise marks a staggering 682% increase from the $17.5 million recorded just a week ago.
It’s worth noting that the figure displayed briefly on Ordspace’s website, indicating a total market cap of $2.93 billion, was deemed inaccurate by the platform. Ordspace clarified that the misleading figure likely resulted from low liquidity in some of the tokens, highlighting the importance of cautious interpretation of such data.
The BRC-20 token standard was initially introduced in early March by a pseudonymous on-chain analyst named Domo. This standard was designed to facilitate the issuance and transfer of fungible tokens on the Bitcoin blockchain. The timing of this experimental invention closely followed the launch of the Ordinals Protocol, a platform that enables users to inscribe digital art references into small transactions on the Bitcoin blockchain.
The surge in the market value of BRC-20 tokens indicates a growing interest in leveraging the capabilities of the Bitcoin blockchain for tokenization purposes. By utilizing the Bitcoin base chain, these tokens benefit from the security and decentralization that the network offers, further enhancing their appeal to investors and enthusiasts.
As the market value of BRC-20 tokens continues to soar, industry figures have taken notice. One notable voice in the cryptocurrency space, Arthur Hayes, the founder of BitMEX, predicts that more banks will face collapse in the near future. Hayes argues that the “Too Big to Fail” (TBTF) banks will be the primary beneficiaries in such scenarios, as they effectively operate as quasi-nationalized institutions due to government liens on their entire deposit base.
According to Hayes, TBTF banks will not be allowed to fail, irrespective of the decisions they make. This arrangement, often criticized for socializing losses while privatizing gains is seen by Hayes as a lucrative advantage for these banks. He suggests that the eight TBTF banks will likely absorb any other financial institutions that struggle to cope with the current market environment, characterized by rapidly increasing interest rates.