Recently, Binance made a surprise announcement regarding the listing of Ordinals (ORDI). Shortly after that, the price of this token and several other BRC-20 tokens surged significantly. Not only that, but the market capitalization, trading volume, and number of transactions also increased. This has led the community to speculate whether BRC-20 tokens are experiencing a revival.
BRC-20 tokens showing signs of attracting funds
Currently, the market capitalization of BRC-20 tokens has reached $429 million, marking an over 50% increase in the past 24 hours. This sudden surge indicates that funds are flowing into the BRC-20 ecosystem.
It’s worth noting that the 24-hour trading volume of Ordinals (ORDI) alone has exceeded $524 million, constituting a major portion of the total BRC-20 market volume. ORDI has also witnessed an impressive 168% increase in the past week, quadrupling in the last month. The growth of ORDI can be largely attributed to its listing on the Binance exchange.
Apart from ORDI, other BRC-20 tokens have also experienced significant increases in the past 7 days, with tokens like TRAC rising by 81%, NALS by 138%, SATS by 530%, and PIZA by 404%. However, their trading volumes have remained relatively low, ranging from 1 to 2 million USD.
The low trading volume has made many investors cautious. Nevertheless, it’s important to note that most of the BRC-20 tokens listed are projects with very low liquidity, with some having minimal or no liquidity at all.
BTC transaction fees surge
After a period of relative stagnation, BRC-20 tokens seem to be making a comeback in November, accompanied by an overall market uptrend. This has coincided with a notable increase in Bitcoin (BTC) transaction fees, the highest since May 2023.
Specifically:
– Nearly 1 million Ordinals were minted in the past 7 days, causing a congestion in the Meempool with over 136,809 pending transactions awaiting confirmation.
– The average transaction fee has surged to nearly $7.
According to data from Dune Analytics, BRC-20 transactions in November have seen days with a total transaction count exceeding 400,000, reaching the highest levels of 2023.
With the current spike in fees, miners are likely benefiting the most. Glassnode data shows that on November 6th, 8.5% of miners’ revenue came from these increased fees, marking the highest daily rate since early June.
The community is starting to anticipate funds flowing into BRC-20 tokens due to the positive effect brought about by ORDI. However, it’s important to note that trading these tokens remains highly speculative and risky.