Growth of BRC-20 Tokens Propels Bitcoin Market: Binance Research Report
Crypto exchange Binance’s research arm, Binance Research, has released a new report highlighting the significant growth of BRC-20 tokens and their impact on the Bitcoin market. Despite initial skepticism about the role of Ordinal’s technology in the Bitcoin ecosystem, Binance Research argues that BRC-20 tokens are one of the most important narratives of 2023.
The BRC-20 token standard, introduced in March 2023, saw a surge in popularity last year with the creation of meme tokens like Pepecoin (PEPE). According to Binance Research, Bitcoin Ordinals inscriptions and BRC-20 tokens played a crucial role in driving Bitcoin’s growth and dominance in the market.
Within the report, Binance highlighted that Bitcoin’s market dominance increased from 40.4% to 50.2%, allowing the network to capture over half of the total market capitalization in the crypto space. The researchers noted that the network’s activity was clearly influenced by inscriptions and BRC-20 tokens, as evidenced by the uptick in Bitcoin’s mempool transaction count.
A spokesperson from Binance Research stated that the growth of BRC-20 tokens is an important narrative for Bitcoin in 2023 and is expected to continue to be a significant topic in 2024. They attributed the rapid growth in market capitalization and the listing of top BRC-20 tokens on major exchanges as crucial factors that contributed to propelling the market further.
Regarding criticisms that Ordinals protocol has no place within the Bitcoin ecosystem, the spokesperson emphasized that Bitcoin is decentralized and permissionless, and its usage should be determined by the community. They stated, “It is not for one person or group to say what the technology can be used for.”
In addition, the Binance Research spokesperson highlighted the economic benefits of Ordinals and BRC-20 tokens. They explained that the emergence of BRC-20 tokens resulted in higher transaction fees, which are helpful for miners who will be impacted by the upcoming Bitcoin halving in 2024.
Overall, Binance Research’s report sheds light on the growth of BRC-20 tokens and their impact on Bitcoin’s market dominance. Despite initial skepticism, BRC-20 tokens have played a crucial role in propelling the market and establishing a new era for Bitcoin. With their continued growth and listing on major exchanges, BRC-20 tokens are set to be an important narrative for Bitcoin in the coming years.
Analyst comment
This news can be evaluated as positive for the market. The Binance Research report highlights the significant growth of BRC-20 tokens and their impact on the Bitcoin market, leading to an increase in Bitcoin’s market dominance. The report suggests that BRC-20 tokens will continue to be an important narrative for Bitcoin in the future. With their growth and listing on major exchanges, BRC-20 tokens are expected to further propel the market.
