According to recent reports, the market capitalization of BRC-20 tokens, a cryptocurrency used on the blockchain-based network Binance Smart Chain, has topped $1 billion. This milestone happens when wallet providers get ready to incorporate the tokens into their platforms, potentially extending their reach and usage.
The decentralized network known as the Binance Smart Chain, introduced in 2020 by the cryptocurrency exchange Binance, is said to have enabled the formulation of smart contracts and the transfer of digital assets. BRC-20 tokens are one of the primary tokens used on the network. It is also similar to the ERC-20 tokens seen on the Ethereum network.
It has also been gathered that the BRC-20 tokens’ market cap has been continuously rising in recent months due to the increased demand for the Binance Smart Chain and its features. BRC-20 tokens’ market capitalization as of May 10 was $1.1 billion, up from $200 million in November 2020.
A rise in the trading volume for BRC-20 tokens on several cryptocurrency exchanges has coincided with this increase in market cap. On May 10, CoinMarketCap reported that the daily trading volume for BRC-20 tokens increased to $2.2 billion from $800 million in January.
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Meanwhile, experts have said that the reduced transaction costs on the Binance Smart Chain, which make it a more appealing choice for customers wishing to transact in cryptocurrencies, influence the growth of BRC-20 tokens. The network is a more practical option for users because it offers quicker transaction speeds than blockchains.
Factors, Innovations Responsible For The Growth Of BRC-20 Tokens
It was also gathered that the increasing use of BRC-20 tokens by wallet providers, who are getting ready to include the tokens in their systems, is another factor fueling the growth of BRC-20 tokens. As users can hold and transact in the tokens more efficiently, this might increase the reach and adoption of BRC-20 tokens.
Trust Wallet, a well-known mobile wallet that accepts several other cryptocurrencies, is one of the wallet providers getting ready to integrate BRC-20 tokens. Trust Wallet recently announced that it would support BRC-20 tokens, enabling users to store and conduct token transactions straight from the wallet.
By the end of May, BRC-20 tokens are anticipated to be fully integrated into Trust Wallet, greatly accelerating their adoption. Investigation shows that over 5 million people use Trust Wallet globally, and the addition of BRC-20 tokens will simplify access and conduct transactions in the tokens.
Other wallet providers, in addition to Trust Wallet, are getting ready to incorporate BRC-20 coins into their platforms. These include Ledger, a producer of hardware wallets, and MyEtherWallet, a well-known web-based wallet. Meanwhile, as at the time of the time of this report, there are approximately 14,000 BRC-20 tokens implemented on Bitcoin.
This is compared to the (estimated) 400 million units of tokens deployed on Ethereum. Even with the market traction, industry experts say that creators of BRC-20 have publicly declared that the standard is not worth it, and users shouldn’t waste their resources mass-minting what they refer to ”fun experiments.”
More Exchanges Integrates BRC-20 Tokens, Strengthens Security
For the Binance Smart Chain and its ecosystem, including BRC-20 tokens in these wallets, marks a significant achievement. These wallet providers are assisting in boosting the acceptance and usage of the tokens by making it simpler for consumers to keep and transact with BRC-20 tokens. This could result in additional growth in market value and trading volume.
Nevertheless, the possible hazards connected to Binance Smart Chain and its tokens are a source of concern. Concerns regarding the network’s governance structure, which Binance and several validators dominate, have been voiced by certain experts. Concerns have also been raised concerning the security of the Binance Smart Chain’s smart contracts, which have recently been the target of numerous breaches and exploits.
Some experts now doubt the network’s dependability and security and its tokens due to these security concerns. Despite these reservations, developing BRC-20 tokens and their incorporation into wallet providers is crucial for the cryptocurrency sector.