March 28, 2024
Bitcoin Revitalized by Memecoins and Protocols
Bitcoin News

Bitcoin Revitalized by Memecoins and Protocols

Bitcoin miners are experiencing record-high revenue, reaching all-time highs, primarily attributed to the increased on-chain fees. The market capitalization of BRC-20 tokens surpassed $4 billion shortly after their introduction in January, marking a significant recovery for the Bitcoin ecosystem.

Miners’ earnings from on-chain fees surged from 1.7% in August to 19.57% in November, while daily mining revenue from block rewards exceeded $40 million in the same month. Bitcoin itself has seen a remarkable 161% year-to-date gain.

The introduction of BRC-20 tokens in January, pioneered by Bitcoin developer Casey Rodarmor, has become a major technological advancement for the 15-year-old blockchain. The Ordinals (ORDI) token, the first meme coin created using the BRC-20 standard, now boasts a market cap of $1.34 billion.

The BRC-20 tokens leverage Bitcoin Ordinals, a numbering system that assigns a unique number to each satoshi, enabling tracking and transfer.

“Unlike Ordinals, which rely on third-party sorters to order asset transactions, the Atomicals protocol’s ARC-20 standard uses Bitcoin’s smallest unit, Satoshi, as the smallest unit for issuing assets. This allows Atomicals assets to trace a complete transfer history without relying on any third-party sorter.”

The emergence of other Bitcoin token standards, such as ARC-20 from Atomicals Protocol, adds further value to the Bitcoin ecosystem. Atomical Protocol includes ARC-20 tokens, nonfungible tokens, Bitcoin domains called “realms,” and on-chain data object storage known as “Collection Containers.”

Despite high gas fees, there is significant community demand for minting BRC-20 tokens. Notably, the Sats (SATS) meme coin was fully minted on Sept. 24, with over 21 million mints and 36,000 holders, despite gas fees totaling over $15 million.

Looking ahead, researchers predict that layer-two solutions like the Lightning Network will play a pivotal role in supporting the broader adoption of Bitcoin payments on a larger scale, despite existing challenges such as high gas fees.

Image by Freepik

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