2024-01-17 06:13:37
A Binance According to Research, the introduction of the BRC-20 token on major exchanges has boosted the market.
The research arm of the crypto exchange Binance highlighted in his latest report the growth of BRC-20 tokens and that this might be one of the most important narratives of 2023. Still, many are skeptical regarding Ordinal’s place in the BTC Price ecosystem.
In its report, Binance Research said the BRC-20 tokens opened a “new era” for Bitcoin. The BRC-20 token standard, established in early March 2023, became very popular last year. Pepecoin and other tokens were also created using the standard. According to Binance, Bitcoin Ordinals coining and BRC-20 tokens influenced the growth and dominance of Bitcoin in 2023.
Bitcoin showed a 24% increase in market dominance in 2023. Source: Binance
In the report, Binance noted that Bitcoin increased its market dominance from 40.4% to 50.2%, giving the network half of its total market capitalization in the crypto space. They pointed out that the activity of the network was “clearly influenced” by the engravings and BRC-20 tokens, which is also shown by the increase in the number of transactions in the Bitcoin mempool.
Bitcoin mempool transaction number from February 2021 to December 2022. Source: Binance
A spokesperson for Binance Research said in a statement that the growth of BRC-20 tokens was an important Bitcoin narrative in 2023, and the company believes it will continue to be an important theme in 2024.
The rapid increase in market capitalization and the introduction of the top BRC-20 tokens on major exchanges were notable events that helped further boost the market.
Regarding those who believe that the Ordinals protocol has no place in the Bitcoin ecosystem, the spokesperson said that Bitcoin is decentralized and permissionless. It can be used at the discretion of the community.
It is not for one person or group to say what technology can be used for.
A spokesperson for Binance Research also highlighted that from an economic perspective, Ordinals and BRC-20 tokens have resulted in higher transaction fees, which are “beneficial for miners,” who may be sensitively affected by the Bitcoin halving in 2024.
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