May - Crypto news
Spring presents us with gentle winds and sideways markets, and we start by taking a look at how Bitcoin, in particular, has grown during the spring.
Bitcoin wallets are a measure of how many users own and use bitcoin as a digital currency. According to CoinJournal, a website that compares different bitcoin wallets, there are now over 10 million active bitcoin wallets worldwide. This is a record high number that shows that more and more people see bitcoin as a valuable and reliable means of payment.
The increase in the number of bitcoin wallets can be explained by several factors, such as:
- Bitcoin's price rally during 2022, which attracted a large number of investors and traders who are now considering BTC for investments.
- Bitcoin's increased acceptance and use in various sectors and regions, such as e-commerce, gaming, remittances, and Africa.
- Bitcoin's technical development and innovation, such as the launch of the Taproot upgrade in November 2022, which improved Bitcoin's scalability, privacy, and functionality.
- Bitcoin's increased availability and convenience through various platforms and services, such as eToro, Guarda Wallet, Trezor, and BitBox02, which offer various benefits, such as user-friendliness, security, performance, and connectivity.
The increase in the number of bitcoin wallets is a positive sign for bitcoin's future, as it indicates a growing demand and increasing confidence in the cryptocurrency. It could also lead to a positive feedback loop, where more users attract more users, which in turn increases bitcoin's value and utility.
However, there are also certain risks and challenges that could affect the increase in the number of bitcoin wallets, such as:
- Bitcoin's volatility and uncertainty, which could deter potential users from buying or retaining bitcoin.
- Bitcoin's regulation and legislation, which can be unpredictable or restrictive in some countries or regions.
- Bitcoin's competition and threats, such as other cryptocurrencies or central bank digital currencies (CBDC), which may offer better alternatives or solutions for some users.
In summary, the increase in the number of bitcoin wallets in May 2023 is a result of bitcoin's strengths and opportunities, but also a result of bitcoin's weaknesses and challenges.
NFT and BRC-20 Tokens
NFTs, or non-fungible tokens, are unique digital assets that can represent art, music, games, collectibles, and more. NFTs have become a popular phenomenon in the crypto world, with several billion dollars in sales and auctions in recent years. Most NFTs are created and traded on the Ethereum blockchain, which offers high programmability and interoperability for these assets.
But in the spring of 2023, two new types of NFTs on bitcoin emerged, thanks to the launch of the Ordinal protocol and the BRC-20 standard. These two innovations have enabled the creation and transfer of both non-fungible and fungible tokens on the bitcoin blockchain.
The Ordinal protocol is a way to assign unique numbers to individual satoshis (the smallest unit of bitcoin) and transfer them along with attached images, videos, or text, known as inscriptions or digital artifacts1. These inscriptions then become NFTs on the bitcoin blockchain.
The BRC-20 standard is a way to create and transfer fungible tokens via the Ordinal protocol on the bitcoin blockchain. BRC-20 tokens use Ordinal's inscriptions of JSON data to distribute, mint, and transfer tokens. BRC-20 tokens are inspired by ERC-20 tokens on the Ethereum blockchain.
According to data from Dune Analytics, more than 120,000 inscriptions have been written on the bitcoin blockchain since the launch of the Ordinal protocol in January 2023, with transaction fees exceeding $170,000 on February 15. Among the most notable inscriptions are Bitcoin Stones, Bitcoin Shrooms, Ordinal Punks, Ordinal Loops, and The Shadow Hats.
According to data from brc-20.io, more than 14,000 different BRC-20 tokens have been minted with the BRC-20 standard since its launch in March 2023, with a total market value of over 1 billion dollars. Among the most popular BRC-20 tokens are ORDI, PEPE, MEME, PIZZA, and many others.
The development of NFTs on bitcoin and BRC-20 tokens had a significant impact on the bitcoin network in the spring of 2023. Some of the effects are:
- Bitcoin's status as the most valuable and secure cryptocurrency has been strengthened, as it can now offer both non-fungible and fungible tokens on its blockchain.
- Bitcoin's technical development and innovation have increased, as the Ordinal protocol and BRC-20 standard have shown new possibilities and functions for the bitcoin blockchain.
- Bitcoin's cultural influence and community have grown, as NFTs on bitcoin and BRC-20 tokens have inspired artists and creators to express themselves and share their visions through the bitcoin blockchain.
- Bitcoin's volatility and uncertainty have also increased, as NFTs on bitcoin and BRC-20 tokens have caused a sharp increase in transaction fees and significant congestion on the bitcoin network.
In summary, the development of NFTs on bitcoin and BRC-20 tokens in the spring of 2023 is a result of the launch of the Ordinal protocol and BRC-20 standard and the subsequent hype around various token collections. It remains to be seen whether this trend will continue or fade during the rest of the year.
Memecoins. The Irony of Fate
Are memecoins what will make crypto mainstream? There's probably nothing that can create such sour faces among crypto enthusiasts as memecoins, but despite this, it could actually be memecoins that lead to crypto breaking through to the general public.
Meme coins are cryptocurrencies that have a humorous or ironic theme, often based on popular internet phenomena, animals, or celebrities. Meme coins have become a hot topic in the crypto space, as they have attracted many investors and speculators looking to capitalize on their sudden and unpredictable price movements.
In 2023, meme coins experienced enormous success, with several examples of coins that increased by several thousand percent in a short time. Some of the most prominent meme coins in 2023 include:
- AiDoge: A meme coin that combines artificial intelligence and Dogecoin. AiDoge uses AI to generate unique and fun memes that can be traded as NFTs on the AiDoge platform. AiDoge has increased by over 10,000% since its launch in January 2023.
- Sponge: A meme coin based on the popular animated series Spongebob Squarepants. Sponge has a limited supply of 100 million coins and uses the Ordinal protocol to create NFTs on the bitcoin blockchain. Sponge has increased by over 5,000% since its launch in February 2023.
- Love Hate Inu: A meme coin that challenges the concept of love and hate. Love Hate Inu has two separate tokens, LHINU (Love) and HHINU (Hate), which can be exchanged for each other at a fixed exchange rate. Love Hate Inu has increased by over 2,000% since its launch in March 2023.
- Mooky: A meme coin that honors the legendary film director Stanley Kubrick. Mooky has a limited supply of 2001 coins and uses the BRC-20 standard to create fungible tokens on the bitcoin blockchain. Mooky has increased by over 1,000% since its launch in April 2023.
- Tamadoge: A meme coin inspired by the classic Tamagotchi toys. Tamadoge allows users to adopt and care for virtual puppies that can grow and develop depending on how they are treated. Tamadoge has increased by over 500% since its launch in May 2023.
The success of meme coins in 2023 can be explained by several factors, such as:
- The general growth and popularity of cryptocurrencies, which has created a large demand and interest in new and innovative projects within the crypto space.
- Meme coins' unique and fun themes, which have attracted many users who want entertainment, community, and humor in their investments.
- Meme coins' high risk and high reward, which have attracted many speculators who want to exploit their volatility and potential return.
- Meme coins' technical development and innovation, which have utilized new protocols and standards to create NFTs and fungible tokens on the bitcoin blockchain.
However, the success of meme coins in 2023 is not without risks and challenges, such as:
- Meme coins' volatility and uncertainty, which can lead to large price drops and losses for investors who are not careful or informed.
- Meme coins' regulation and legislation, which can be unpredictable or restrictive in certain countries or regions.
- Meme coins' competition and threats, such as other meme coins or more established cryptocurrencies that can offer better alternatives or solutions for users.
In summary, the success of meme coins in 2023 is a result of the general growth and popularity of cryptocurrencies, unique and fun themes, potential high risk and high reward, as well as meme coins' technical development and innovation, as they often have enormous communities contributing.
Writer for Goobit and founder of Kryptoguiden.info