Bitcoin-based token transactions have surpassed regular Bitcoin transactions for two consecutive days, according to data from pseudonymous crypto trader and analyst, Crypto Koryo. These tokens are primarily based on the BRC-20 token standard, which enables anyone to issue both fungible and non-fungible tokens on the Bitcoin network. Tokens such as Ordinals, pepe, and meme are among the thousands of tokens that have been minted using the BRC-20 standard, and they are driving up the network’s activity.
The BRC-20 standard’s novelty lies in its perceived security on the Bitcoin blockchain, according to Crypto Koryo. Despite technical flaws and the meme-centric nature of the tokens, their growth continues to attract new users, for now. Transactions involving BRC-20 tokens accounted for 42%-54% of all transactions on the Bitcoin network between April 29 and May 2, excluding bitcoin transactions made on the Lightning network.
As BRC-20 token transactions on the Bitcoin network increase, so do the fees generated by the token standard. BRC-20 fees have skyrocketed since late April, reaching a peak of almost 27.73 bitcoins or roughly USD 1.2 million. This trend has resulted in over 100 extra bitcoins in fees, or approximately USD 2.8 million, being paid to miners, which has boosted their revenues. As a result of the surge in Bitcoin-based token activity overtaking regular transactions, some are now considering memecoin trading as the cryptocurrency industry’s killer app.
