The research arm of the cryptocurrency exchange Binance highlighted in its latest report the growth of BRC-20 tokens and claimed that despite skepticism, the Ordinals space is one of the most significant developments in the Bitcoin blockchain ecosystem in 2023. What are the notable details about Ordinals, which have been a significant focus of interest especially since March 2023? Let’s take a look.
Binance’s Bitcoin Report
Binance Research emphasized in its latest report that BRC-20 tokens have started a new era for Bitcoin. The BRC-20 token protocol, created at the beginning of March 2023, gained a different dimension with the creation of memecoin projects like Pepecoin using the standard last year. According to the Binance team, the Bitcoin Ordinals Inscriptions space and BRC-20 tokens have significantly contributed to Bitcoin’s growth and market dominance in 2023.
In the report, Binance pointed out that Bitcoin increased its market dominance from 40.4% to 50.2%, allowing the network to capture half of the total market value in the crypto space. Researchers emphasized that the network’s activities were clearly influenced by Inscriptions and BRC-20 tokens, drawing attention to the increase in Bitcoin’s mempool transaction count.
Noteworthy Statements from a Binance Official
A spokesperson for Binance Research stated that the growth of BRC-20 tokens has created significant Bitcoin hype in 2023 and the company believes it will continue to encounter significant interest in 2024:
“The rapid growth in market value and the listing of the top BRC-20 tokens on major exchanges have been key points that helped push the market further.”
Addressing those who believe that the Ordinals protocol has no place in the Bitcoin ecosystem, the company spokesperson highlighted that Bitcoin is decentralized. The Bitcoin ecosystem can be used as the community decides:
“It is not up to one person or group to dictate what the technology can be used for.”
The Binance Research spokesperson also emphasized that economically, Ordinals and BRC-20 tokens could lead to higher transaction fees, which would be a source of income for miners affected by the upcoming Bitcoin halving process in 2024.
