A new token standard called BRC-20 has emerged on the Bitcoin blockchain, leading to a surge in speculation. These tokens, known as Memecoins, are built on the BRC-20 standard and mimic internet memes. Examples include tokens like Ordi, Pepe, Piza, and Meme, which have seen staggering appreciation of up to 28,000% in recent weeks.
The BRC-20 standard enables the creation and transfer of fungible digital assets on the Bitcoin blockchain through the Ordinals protocol.
Moreover, this protocol allows users to attach data to satoshis, the smallest unit of Bitcoin, effectively transforming them into tokens.
The rise of Memecoins – Ordi reaching $400 million
The Ordinals protocol has facilitated the rise of memecoins on the Bitcoin blockchain, solely driven by speculative purposes without inherent utility or programmability.
Since their introduction in March, the launch of 14,300 BRC-20 tokens has taken place. It has accumulated a combined market capitalization that surpasses $1 billion.
The largest memecoin within this ecosystem is Ordi, paying tribute to the Ordinals protocol, with a value reaching $400 million.
Despite the significant appreciation of some memecoins, investors are cautioned to exercise prudence. Many traders are actively seeking to sell their coins to higher bidders.
When Pepecoin was listed on the Gemini exchange, a disclaimer was included in the announcement. It acknowledged that the value of the token is solely dependent on market demand and trading activity. Moreover, it could result in a total loss of value and extreme price volatility.
Dogecoin, Pepecoin reaching market capitalisation of over $100 million
A humorous and facetious project in 2013 originally led to the creation of Dogecoin. It gained widespread popularity, particularly after receiving support from billionaire Elon Musk in 2021. Further, this led to the emergence of other memecoins like Shiba Inu, Akita Inu, and Kishu Inu. The success of Dogecoin inspired these.
The introduction of BRC-20 tokens has reignited interest in memecoins. In addition, it makes it relatively easy to create new ones.
Pepecoin, named after a popular cartoon frog embraced by crypto enthusiasts, initially launched on the Ethereum blockchain in April, quickly reaching a market capitalization of over $1.8 billion. A subsequent version of Pepecoin, in the form of BRC-20, was also launched, and it reached a peak market capitalization exceeding $100 million.
The market capitalization of the Ethereum Pepe token has experienced a decline of 69% from its peak. It’s value stands at $560 million.
It is important to note that the memecoin market is highly volatile, and investors should exercise caution when engaging in such speculative investments.