In recent days, the BRC20 track craze has swept across again, and the cryptocurrency market has suddenly increased its attention. Among them, the launch of the first BRC20 token ORDI has attracted the attention of many investors. ORDI's initial increase was as high as 1,428 times, attracting a large number of user participation and discussions. This article will provide an in-depth analysis of the concept of BRC20, the rise of ORDI and its impact on the market.
What is BRC20?
BRC20 is an experimental standard for minting tokens on the Bitcoin chain. It mints inscriptions on each Satoshi through the Ordinals protocol (Satoshi is the smallest unit of Bitcoin, 1 Satoshi is equal to 0.00000001 BTC). The core of this standard is fair minting, which means that any user can participate in minting. As long as a certain token is deployed on the Bitcoin chain, other users can mint according to the standard.
However, casting is not without risks. If the user's hand speed is slow or the network delay causes the casting to fail, the gas fee paid will not be refunded. This mechanism increases the competitiveness of casting to a certain extent and also makes users need to be more cautious when participating.
The rise of ORDI
ORDI is the first token of the Ordinals protocol, deployed by Twitter influencer @domodata in March this year. Since its launch, 21 million ORDIs have been minted quickly, and the price of ORDI has now reached $10, and even once soared to $40 in over-the-counter transactions. If 1,000 ORDI were minted at the gas cost of about $7 at the time, the current increase would be as high as 1,428 times. This astonishing increase undoubtedly attracted widespread attention.
BRC20 market dynamics: In addition to ORDI, another high-profile BRC20 token is sats. The total amount of sats reaches 2100 trillion, and the number of held addresses reaches 38,112. Currently, sats is still in the primary market circulation stage and has not yet been listed on mainstream exchanges. However, users can purchase and view the price of sats on the Unisat and OKX Ordinals markets.
For example, the floor price of sats is 50 billion sats, and the pending order price is 0.19395 BTC, which is approximately more than 6,700 US dollars. Similar to most MEME tokens, sats has no specific intrinsic value, and its price increase mainly depends on users' FOMO (fear of missing out) emotions and consensus.
Market drivers for Sats
Recently, sats has been given a certain degree of practicality. The BRC20 casting platform Unisat uses sats as gas and rewards consumed by the platform, which undoubtedly provides support for the price of sats. However, there are also some uncertainties in the market. Some people believe that the high rise in sats is due to the marketing push behind it. Although the token launch process is fair, the participation of whale wallets and large investors may still affect the direction of the market.
According to data, the top 10 currency-holding addresses hold a total of 7.38% of sats tokens, of which the largest one holds 22,651 trillion sats, which translates to a current market value of more than 2.7 million US dollars. This phenomenon of concentrated currency holdings may have an impact on future market fluctuations.
Risks and Opportunities for Investors
Although the rise of BRC20 tokens provides new opportunities for investors, it also comes with corresponding risks. The threshold for minting and purchasing BRC20 tokens is higher. Users need to have a BTC wallet and purchase in the primary market. This makes the participants mainly concentrated among a small number of users who are interested in the BRC20 track.
In addition, market volatility also requires investors to remain cautious. While ORDI and sats have seen impressive gains, the unpredictability of the cryptocurrency market remains. Therefore, investors should fully assess their risk tolerance when participating.
in conclusion
The rise of BRC20 tokens, and especially the success of ORDI, signals a new trend in minting tokens on the Bitcoin chain. Despite the high market enthusiasm, investors still need to remain rational and carefully evaluate risks and opportunities when participating. In the future, with the emergence of more tokens, the BRC20 track may usher in more intense competition and more innovation.
All in all, the rise of BRC20 not only provides investors with new options, but also brings new vitality to the entire cryptocurrency market. In this rapidly changing field, whoever can seize the opportunity will be invincible in the future market.