The Bitcoin Blockchain is witnessing a surge in activity, as evidenced by a record-breaking number of daily transactions this month. It reached an all-time high of 682,000, according to Glassnode data.
There has been a significant increase of almost 40% compared to the previous peak in 2017. Furthermore, bitcoin’s dominance in the overall cryptocurrency market has risen from 38% to 44% since the beginning of the year. In addition, it amounts to a share of the $1.16 trillion market.
Emergence of BRC-20 backing rising interest in Bitcoin Blockchain
At the forefront of this activity is the emergence of BRC-20, the first class of crypto tokens built on the bitcoin blockchain, excluding bitcoin itself.
Over the course of this year, minting approximately 25,000 experimental coins of this kind has led to a surge in transactions. Blockchain data indicates that the average daily transactions over a seven-day period have surpassed 531,000. This is doubling the figures from just a month ago.
BRC-20 tokens currently serve no specific purpose beyond speculation, akin to memecoins. However, their growing popularity signifies a rising interest in bitcoin as more than just a store of value or payment method.
Instead, it is being viewed as a foundational platform for developing new coins and applications. More contemporary blockchains such as Ethereum and Solana previously dominated the area.
A safer and dependable long-term foundation for creating tokens and applications
Market participants suggest that investors and developers see Bitcoin Blockchain as a safer and more dependable long-term foundation for creating tokens and applications. This is particularly in light of recent market volatility following the collapse of notable firms like FTX and a general shift away from riskier assets.
Alex Miller, the CEO of the bitcoin developer network Hiro, highlights bitcoin’s trustworthiness as the oldest network. He explains people’s desire to have the capabilities offered by other blockchains available on the bitcoin platform.
Despite the enthusiasm surrounding BRC-20 tokens, their market has experienced significant volatility. The total value of these tokens, typically traded on secondary markets, particularly decentralised exchanges, exceeded $1 billion in early May. However, it has since fallen back to $446 million, according to data from BRC-20.io tracker.