Hype on Bitcoin - BRC20

BRC-20 is a new experimental token standard on Bitcoin (a type of non-fungible token that is encoded based on the Ordinals protocol and has a consistent appearance in text). It has gained significant attention in the past two weeks, similar to MEME, and attracted market discussion and capital inflows. Today’ #Datacheck will review the data performance related to this narrative.

1/ BRC20 Tokens

With a total market capitalization of 720 million US dollars, it ranks outside the top 60 of ERC20 list.
The 24h trading volume of BRC-20 was 200 million US dollars, surpassing the volume of DEX on Polygon (100 million), but lower than the volume of DEX on Arbitrum (300 million) during the same period.
By market capitalization ranking, only $ORDI exceeds 100 million US dollars, reaching 400 million. $Bank, ranking 5, has a market capitalization of only 20 million.
According to the sorting of BRC-20 holders, the highest token holder does not exceed 10,000, and $SHIB, ranking 10, only exceeds 2,000, indicating that the number of actual participating users is relatively small.

source: https://brc-20.io/

source: https://unisat.io/brc20

2/ Txs & Fee

BRC20 was born on March 8th, but it didn't gain significant trading volume until April 23rd.
Trading volume continued to rise from April 23rd, but from May 2nd to 5th, the hype dropped significantly due to the MEME erc20 token .
On May 6th, it regained attention and reached a daily trading volume peak of 396,000 on May 7th, with transaction fees reaching 245 BTC on the same day.

source: https://dune.com/cryptokoryo/brc20

3/ Share of BRC20 on Bitcoin network

Txs based on the Ordinals protocol (BRC721 or BRC20), BRC20's share significantly surpassed BRC721's from April 22nd.
On April 30th, BRC20's txs accounted for over 50% of all txs on the BTC network for the first time.
On May 7th, it reached a peak with a share of 65%.

source: https://dune.com/cryptokoryo/brc20

4/ Different types of tx on BRC20.

BRC20 transactions consist of Deploy, Mint, and Transfer.
The majority of BRC20 transactions are minting, and there are not many turnover-related transactions.
Looking solely at the Deploy transactions, it can be seen that the period from March 8th to 15th had the highest times. Therefore, the current popular BRC20 has a significant number of early holders who acquired tokens through minting.

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source: https://dune.com/cryptokoryo/brc20

5/ The biggest beneficiary from BRC20 - Miners.

Transaction fee income has continued to rise, leading to an increase in block rewards. As an example, on May 8th, the total network transaction fee income reached 635 BTC, accounting for 74% of the block rewards.
As a comparison, 90 days ago, miners' transaction fee income was only 18 BTC, and the current increase has reached 35 times.

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source: https://explorer.btc.com/stats/fee

6/ Congestion on Bitcoin network is apparent.

Taking May 8th as an example, the average transaction fee on the network was $31, while before May, the fees were generally kept within $3 or less.
The number of transactions in the memory pool has also significantly increased in the past month, currently maintaining at nearly 60,000 unprocessed transactions.

source: https://bitinfocharts.com/zh/comparison/bitcoin-transactionfees.html#3m

source: https://www.blockchain.com/explorer/charts/mempool-count

7/ The popularity of BRC20 has brought benefits to miners. However, for participants, the current action centers around ‘Mint’ rather than ‘Transfer’. It is uncertain whether such popularity can be sustained and bring more value. Meanwhile, as the Bitcoin ecosystem grows rapidly, network congestion issues, and related second-layer and lightning network solutions are worth continuous attention in the future.