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BRC-20 Meme Coin Mania Alarms Bitcoin Network, Minting Fee Hiked

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Meme coin mania is slowly catching on in the crypto industry, while most are on the Ethereum network causing ETH deposits to reach 20,000. Bitcoin fees are tearing the roof, with increased demand for the BRC-20 tokens reaching their peak. However, some believe that these tokens could kill Bitcoin, but they now allow developers to explore exciting possibilities in the free market. 

Meme Mania Surprizing Bitcoin Network

Altcoins built on the Bitcoin network, generally referred to as BRC-20, are slowly gaining considerable momentum, and their market cap crossed $300 Million in just two months since launch. The platform has more than 13,000 tokens currently under circulation, with ORDI, PIZA, PEPE, MOON, MEME, DOMO, PUNK, SHIB, XING, and OSHI being the most popular ones. 

PEPE is the most popular meme coin recently, surging almost 400% since its launch. Its BRC-20 version registered a market cap of around $17.6 Million, while other top tokens accounted for 86.55% of the total $300 Million market cap. Dune Analytics’ report suggests that the highest number of transactions was reported to be close to 400k on the last trading day, with average fees of over 245 BTC. 

Meme Coin mania
Source: DUNE

As these tokens are gaining popularity, the Bitcoin ecosystem observes increased demand for these BRC-20 tokens. These are text-based inscriptions and ordinals, which are new types of NFTs created on the Bitcoin blockchain. Data also suggests the network is experiencing increased demand for block space driven by BRC-20 tokens.

This demand influx for these tokens is causing troubles for the entire Bitcoin network. Currently, there are over 400k unconfirmed transactions, presumably due to BRC-20 tokens. In the meantime, the fees also increased massively, and the mining rewards also went parabolic. 

The popularity of these Ordinals caused the biggest crypto exchange in the world to halt withdrawals twice in 12 hours due to a massive volume of pending transactions. The meme coins affecting the top exchange show a buzz around them. 

These new meme coins are being minted using the BRC-20 standards, and daily mining fees reached a record high of 247 BTC on May 7, 2023. Also, the total fees of these Bitcoin ordinals were nearly 641 BTC. From another perspective, the transaction fees on Bitcoin crossed 400 BTC on May 7, an 18-fold increase compared to data from a month before. 

Meme Coin mania
Source: DUNE

A new standard called BRC-21 was first proposed on May 7, 2023, allowing tokens on the other chains to be minted and redeemed on the Bitcoin blockchain. The document describes the primary use cases for the BRC-21 standards as “deploying decentralized stablecoin onto Lightning Network or similar payment protocols.” 

Taproot upgrade was implemented on the Bitcoin network in November 2021 and became the first upgrade after the Segregated Witness (SegWit) update in 2017. The primary purpose of Taproot was to improve the network’s security, efficiency, and scalability. This upgrade has just been made simple to increase the productivity of the Bitcoin block space into any arbitrary protocol, further helping the network.

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