Binance Research’s latest report underscores the significance of BRC-20 tokens and the Ordinals protocol within the Bitcoin blockchain ecosystem, despite skepticism from some quarters. It suggests that these developments are among the most notable in 2023, particularly with the rising interest in Ordinals since March 2023.
The report highlights the advent of a new era for Bitcoin with the creation of the BRC-20 token protocol in early March 2023, which gained a new dimension with projects like Pepecoin. According to Binance, the Ordinals Inscriptions space and BRC-20 tokens have contributed significantly to Bitcoin’s growth and market dominance in 2023.
Binance’s report points out that Bitcoin’s market dominance increased from 40.4% to 50.2%, allowing the network to capture half of the total market value in the crypto space. Researchers emphasize the clear impact of Inscriptions and BRC-20 tokens on the network’s activities, noting the increase in Bitcoin’s mempool transaction count.
A spokesperson for Binance Research stated that the growth of BRC-20 tokens has created significant hype for Bitcoin in 2023, and the company believes it will continue to attract significant interest in 2024. They highlighted the rapid market value growth and listing of top BRC-20 tokens on major exchanges as key factors driving the market forward.
Addressing skeptics who doubt the place of the Ordinals protocol in the Bitcoin ecosystem, the spokesperson emphasized Bitcoin’s decentralized nature, suggesting that the ecosystem can be utilized as the community decides. They also mentioned that economically, Ordinals and BRC-20 tokens could lead to higher transaction fees, providing a source of revenue for miners affected by the upcoming 2024 Bitcoin halving.