Ordinals warming up! OKX exchange dominates over 90% market share, BRC-20 all meme coins?

Recently, with the resurgence of interest in the Ordinals protocol, the average transaction fees for Bitcoin have once again surpassed Ethereum after half a year. Further examination into the skyrocketing BRC-20 tokens reveals that most tokens in this market are meme coins, with small scale and no practical utility. Despite the potential for significant returns due to their high volatility, they also pose a high risk of substantial losses.

Bitcoin Transaction Fees Surpass Ethereum

According to data from BitInfoCharts, the average daily transaction fees for Bitcoin surged to a six-month high on November 18, reaching $18.67, compared to $7.99 for Ethereum. The fees for Bitcoin have skyrocketed by as much as 7 times within a month.

Currently, although both have dropped to $10.34 and $8.42 respectively, Bitcoin still remains higher in network fees compared to Ethereum.

The community attributes this phenomenon to renewed interest in the market surrounding the Ordinals protocol, especially after the cryptocurrency exchange Binance announced the listing of the $ORDI trading pair, triggering a market frenzy.

A few days ago, a startup focused on Bitcoin Ordinals, Taproot Wizards, even attracted interest from venture capital firms, claiming to have raised $7.5 million in seed funding.

Ordinals Market Rapidly Rebounding

Reviewing the current situation in the Ordinals market, data from Dune indicates that the recent growth represents a substantial and explosive resurgence in the market after months of relatively low transaction volume and activity.

Interestingly, in terms of market share of transaction volume, it is evident that Unisat and Magic Aden, which previously dominated the market share in May, are gradually being overtaken by the cryptocurrency exchange OKX that has actively entered the Ordinals market, now capturing an astonishing 90% market share.

Earlier reports indicated that the Ordinals protocol, dubbed as "Bitcoin-based NFTs," successfully launched in February this year. Along with the rapid increase in popularity and the subsequent emergence of thousands of BRC-20 tokens, the protocol has also sparked numerous criticisms and debates.

Are Ordinals and BRC-20 Garbage Data or a Reflection of Creative Freedom? An Article Clarifying Both Sides

Despite the Hype in the BRC-20 Market, It Remains Speculative Hype

Due to the embrace of BRC-20 tokens based on the Ordinals protocol by major centralized exchanges (CEX), it has further facilitated broader market liquidity, leading to a surge in the prices of Bitcoin-related tokens.

Data from CoinCarp shows that among the top ten tokens by market capitalization, the prices of 6 tokens have fluctuated by over 20% in the past 7 days, not to mention other tokens that have seen massive increases or drastic drops, indicating high risk.

Upon closer examination of each token, it is evident that most current BRC-20 tokens are meme coins with no tangible or practical utility. Moreover, market hype is overly concentrated on certain tokens, with most having relatively small market capitalization and very high volatility.

It is important to note that despite the cryptocurrency community's tales of riches from BRC-20, caution is advised due to the risks in this market; once the hype diminishes, liquidity will also decrease.