Bitcoin Ordinals and BRC-20 Steal the Show in NFT Market Over the Past Week

Date: May 5 - May 12, 2023

In this NFT recap, we'll delve into all the essential developments in the NFT space over the past week, ensuring you stay informed and up-to-date on the latest happenings. NFT is all about attention, and attention shifts quickly! There are tons of updates and excitement to share with you all on this week’s NFT Market Recap. We hope you enjoy :)

• Low volumes and continued decline in the broad NFT market, with the market participants more focused on meme coins.
• Azuki experiences a significant drop in floor price due to incentivized bidders and a lack of real buyers.
• Prices of recently popular NFT collections, such as Pudgy Penguins and CloneX, are also experiencing weakness.
• The Sandbox is the best performing NFT asset this week, following the announcement that it is partnering with Affyn, a Singapore-based game development and metaverse company, to bridge the two ecosystems.

• Pundgy Penguins raises $9 million in a seed funding round led by 1kx and participated by KuCoin, causing a price rally but followed by a sharp sell-off.
• OpenSea Pro adds $PEPE token for buying NFTs and introduces mobile bidding.
• The Sandbox partners with Affyn to Enhance the Open Metaverse.
• DeGods have officially been added to Blend, and the lending protocol offers zero percent interest rate loans for up to 7.6 ETH to buy a DeGod.
• Memeland’s Captainz announced the upcoming release of their MEME coin.
• Elon Musk Tweets Milady Meme.
• RTFKT delays forge deadline due to high gas fees on Ethereum.

Key Takeaways:

1. The BRC-20 token standard has enabled a thriving meme coin market on Bitcoin, driving an increase in transactions.
2. The Ordinals Protocol is an innovative approach to creating NFTs on Bitcoin, which has resulted in a surge in popularity,.
3. The growth of Bitcoin appears to be in the early stages of a significant trend rather than a temporary bubble.

What's the Buzz About?

The BRC-20 token standard's debut has resulted in Bitcoin transaction fees surging to their highest levels in two years. This standard allows users to create fungible tokens on the Bitcoin network using the Ordinals protocol.

It's natural to draw parallels between BRC-20 and Ethereum's ERC-20 standard; however, these similarities are mostly superficial. Here is an in-depth analysis of BRC-20's limitations compared to ERC-20, by ChainLinkGod on Twitter. However, despite these limitations, BRC-20s have ignited a thriving memecoin market on the Bitcoin platform.

Significant Figures

• $20: Average transaction fee on the Bitcoin network on Monday, marking a 15x surge from the previous week's average of $1.20
• 11,705: Total number of BRC-20 tokens issued on Bitcoin
• $730M: The combined market cap of Bitcoin's BRC-20 tokens

NFTs have recently experienced a surge in popularity on Bitcoin as well, thanks to the Ordinals Protocol that made creating new assets possible on Bitcoin. Over five million inscriptions have been registered, with Ordinal fees reaching a staggering 257 BTC ($7.5M) on Sunday. It is interesting to point out that most NFTs on Bitcoin are text-based (86%), differing from those commonly found on Ethereum. PNG inscriptions follow as the second most frequent format at 9.6%.

For active market participants, the expansion of Bitcoin is becoming increasingly difficult to ignore. The Ordinals protocol's development has fueled this emerging market, suggesting the early stages of a substantial trend rather than a short-lived bubble.

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