Bitcoin blockchain peaks in popularity after BRC-20 launch
Bitcoin blockchain peaks in popularity after BRC-20 launch
Daily bitcoin transactions have surged to a record 682,000 in recent weeks.
The launch of BRC-20, the first-class crypto token based on the Bitcoin blockchain, has caused a global shift in the network. Approximately 25,000 coins have been issued this year, significantly increasing the number of transactions.
Gordon Grant, co-head of the trading unit at Genesis Trading, said, "BRC-20 tokens have become a phenomenon in the blockchain that we haven't seen before."
According to Yahoo! Finance, the issuance of these tokens has almost doubled the average daily transaction volume compared to last month.
Bitcoin blockchain is growing in popularity, even though the new class of cryptocurrency has yet to be put to practical use and is more subject to user hype like meme cryptocurrencies. The active demand for blockchain shows the growing interest in Bitcoin not as an asset to store funds or make payments but as a basis for creating new coins and applications, which was previously possible in the Ethereum and Solana networks.
Cryptoanalysts believe that investors and developers see the Bitcoin blockchain in the long term as a reliable platform for releasing apps or coins, which is especially relevant after the bankruptcy of major crypto exchanges, in particular FTX, and the exodus of cryptocurrency companies from the U.S. amid an SEC war on the cryptocurrency sector.
"Investors have been evaluating how other blockchains can be used, and they want to get that from Bitcoin as well. This particular cryptocurrency has credibility and a solid track record that people can trust," said Alex Miller, CEO of bitcoin developer network Hiro.
However, BRC-20 is not considered stable. The total value of these tokens surpassed $1 billion in early May, then plummeted to $446 million. BRC-20 is primarily traded on secondary markets and decentralized exchanges.
