Journalist
Posted:
- The market cap of tokens developed under Bitcoin Ordinals surpassed $1.4 billion.
- Trading and social volume fell, indicating a likely drop in token prices.
Growing an ecosystem into a $1 billion market cap is never an easy task. But earlier in the year, tokens developed under the Bitcoin Ordinals’ BRC-20 standard accomplished it in a short time.
However, that landmark did not last for long as the market cap of the sector fell to $400 million a few weeks later.
Back in all your faces
Recently, the game seems to have changed for the BRC-20 tokens. This is because the market cap crossed $1 billion again, reaching $1.4 billion, based on AMBCrypto’s analysis of BRC-20.io.
Introduced around January 2023, Bitcoin Ordinals is a new form of digital artifact that allows the inscription of text, audio, images, and the like on satoshis.
Satoshi is the smallest Bitcoin unit. While Bitcoin Ordinals, in its early days, offered non-fungible tokens on the network, BRC-20 followed as an experiment to allow fungible tokens on the Bitcoin blockchain.
Over the last few months, this experiment has been deemed successful in a way. Although the hype fizzled out at one point, the listing of Ordi [ORDI] on Binance seemed to be the catalyst that brought back attention to the others.
ORDI is one of the top BRC-20 tokens. On 8th November, AMBCrypto gave an account of the cryptocurrency’s tremendous hike after the Binance listing. As a result of the surge, other BRC-20 tokens followed suit.
A look at the Ordspace website showed that other tokens including TRAC, OSHI, NALS, and a lot more have followed ORDI’s movement.
Source: Ordspace
Time for a little calm
To assess if these tokens still have the attention of the market, AMBCrypto felt it was important to check the sentiment around ORDI, the top token of the group. Two metrics that can give proper insight into this are the trading volume and the social volume.
Social volume measures the search terms and messages related to a coin. Trading volume is the amount of assets exchanged within a specific period of time.
At press time, ORDI’s trading volume on exchanges was $414.66 million.
This volume was close to the same value allocated to it on 15th November. While trading volume remained almost the same, ORDI’s social volume fell.
The combination of these metrics implies that the market is currently overlooking these tokens.
Source: Santiment
How much are 1,10,100 ORDIs worth today?
Therefore, players might need to lower their expectations on the BRC-20 tokens. Another look at the broader market showed that tokens are undergoing correction.
So, the likes of OSHI and TRAC may do the same. Should the market return to the accumulation phase, then the price of these tokens may also restart the uptrend.