In the world of crypto, BRC-20 tokens have been on fire lately, with no signs of cooling down. Supported by Binance, numerous BRC-20 tokens have been listed and experienced significant price surges, such as ORDI, SATS, and most recently, RATS.
However, the influx of funds into BRC-20 tokens has been ongoing for over a month, leading many investors to worry that the buying opportunity is diminishing. Consequently, attention has shifted to another category known as DRC-20 tokens.
Recent standout tokens in this space include:
- ORDI has surged nearly tenfold in the past two months, rising from $6 to nearly $70.
- SATS has increased eightfold in the first half of December, experiencing explosive growth upon listing on Binance.
- RATS has tripled in value in just two days following its Binance listing and grown sevenfold in the past week.
- MUBI, which surged 54% today and has grown almost 15 times in December alone.
Binance has shown leniency by listing a variety of tokens, even those with limited utility but strong short-term liquidity. However, today’s data indicates a 32% decrease in trading volume for BRC-20 tokens, dropping below $2 billion in volume and an 11% decrease in market capitalization. Among these tokens, most of the trading activity remains concentrated in the key assets like ORDI, SATS, and RATS, while others in the rankings have negligible trading volume.
Even ORDI, with the largest trading volume, only saw a 1.65% increase in the past seven days. Only newly listed tokens have experienced significant growth due to the positive psychological effect of their listings. This indicates that traders and investors remain cautious despite these tokens not experiencing significant price drops.
Similar to how BRC-20 tokens were created, DRC-20 tokens, or Dogecoin-based tokens, have gained attention. These tokens are created on the Dogecoin network, and the process of minting DRC-20 tokens is not overly complex.
Several reasons have contributed to the interest in DRC-20 tokens:
- Investors believe that DRC-20 tokens share similarities with BRC-20 tokens and, although they may seem “useless,” the expectation is that money will flow into them due to their relatively low prices. Investors are willing to take higher risks in the hopes of a life-changing opportunity.
- Some DRC-20 tokens have experienced significant price increases, raising the expectation that exchanges (CEX) will take notice and list them. For example, Gate.io listed DOGI, which became one of the top 24-hour trading volume tokens in the DRC-20 category, exceeding $1.7 million. Investors anticipate that other tokens like bm2k, dcex, fiwb, and more could also experience substantial growth in the near future.
- Community observations suggest that many investors are treating this as a “lottery ticket,” where they are willing to risk it all for potentially high profits. This mindset could lead to sharp price increases but also significant downturns.