Nonfungible tokens (NFTs) and memecoins traded on Bitcoin have witnessed a surge in monthly trading volume in May, surpassing Solana’s volume, as reported by CryptoSlam data. Although Ethereum continues to lead the pack with $393 million in NFT volume, Bitcoin has gained significant ground over popular blockchains such as Polygon, ImmutableX, BNB Chain, and Solana during this period.
Bitcoin leapfrogs Solana to take second spot
Data from a Dune dashboard by Domo, the creator of the BRC-20 token standard on Bitcoin, reveals that BRC-20 token transactions accounted for the majority of activity on the network. The BRC-20 token standard, an experimental fungible token standard built on Bitcoin, has attracted attention for memecoins—speculative cryptocurrencies fueled by enthusiastic communities.
During the first half of May, the total market capitalization of BRC-20 memecoins surpassed the $1 billion mark, driven by increasing hype. However, it’s important to note that popular BRC-20 tokens like ORDI, PEPE, and MEME have no attached utility and were primarily issued for experimental purposes. For example, ORDI was created by Twitter user Domo to showcase the functionality of BRC-20 tokens on Bitcoin.
The trading volumes of BRC-20 tokens primarily stem from traders seeking to capitalize on the recent craze. As the initial hype subsides, it is expected that trading activity around BRC-20 tokens will decline as well.
Bitcoin network will strive to catch up with Ethereum
The market has also witnessed a shift from BRC-20 tokens to media-based ordinals, particularly BTC NFTs. Magic Eden, a prominent BTC NFT marketplace, has started to compete with UniSat, which primarily trades in BRC-20 tokens. While collections like Bitcoin Frogs have shown promising trading volumes, they are still far behind top Ethereum collections like Bored Ape Yacht Club (BAYC), which achieved over $40 million in trading volume between April 23 and May 23.
Although the BTC NFT ecosystem is currently lagging behind Ethereum, which offers advantages like integration with the $27.5 billion decentralized finance ecosystem and support for decentralized autonomous organizations, NFT traders on Bitcoin hope to replicate Ethereum’s success. The challenge lies in developing loyal communities similar to those formed around collections like CryptoPunks, Milady Maker, Azuki, and BAYC.
As the trading volume of NFTs and memecoins on BTC secured the second spot in May, the NFT collections on the network still need to provide utility and cultivate a loyal community of holders. The future of Bitcoin NFTs will be determined by their ability to deliver unique advantages and foster exclusive communities, akin to the achievements seen with CryptoPunks, Milady Maker, Azuki, and Bored Ape Yacht Club on Ethereum.
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