BRC-20 Tokens Boost Bitcoin Dominance in 2023

Binance Research’s recent study highlights the significance of BRC-20 tokens, marking a new era for Bitcoin in 2023.

In its most recent study, the research division of the cryptocurrency exchange Binance emphasized the expansion of BRC-20 tokens. The publication argued that this is one of the most significant tales of 2023, even though many people are suspicious about Ordinal’s position within the Bitcoin ecosystem.

Binance Research’s most recent research publication argues that the introduction of BRC-20 tokens marked the beginning of a “new era” for Bitcoin. In the previous year, the BRC-20 token standard gained popularity due to the generation of meme tokens like Pepecoin using the standard.

According to Binance, Bitcoin Ordinals inscriptions and BRC-20 tokens affected the expansion and dominance of Bitcoin in the year 2023 for the cryptocurrency.

Binance’s study revealed that Bitcoin’s market dominance increased from 40.4% to 50.2%, allowing the network to capture over half of the total market value in the cryptocurrency field.

The researchers highlighted that inscriptions and BRC-20 tokens significantly impacted the network’s activity, drawing attention to a surge in transactions within Bitcoin’s mempool.

A statement from a spokeswoman for Binance Research, who stated that the expansion of BRC-20 tokens was a significant Bitcoin narrative in 2023, and the business believes that it will continue to be a significant topic in 2024.

“The rapid growth in market capitalization and the listing of the top BRC-20 tokens on major exchanges have been notable highlights which helped propel the market further.”

In response to a question about individuals who believe that the Ordinals protocol does not belong within the Bitcoin ecosystem, the spokesman stated that Bitcoin is a permissionless and decentralized cryptocurrency.

What the community chooses determines its usage. A single individual or organization cannot determine the potential uses of the technology.

The spokesman for Binance Research pointed out that Ordinals and BRC-20 tokens contribute to greater transaction fees from an economic perspective.

These costs are “helpful for miners,” who will be affected by the forthcoming halving of Bitcoin in 2024.