Introduction
The approval of BTC ETFs by the SEC on January 11 marked a historic milestone for cryptocurrency, with 11 BTC ETFs now trading on U.S. markets. As the Bitcoin halving cycle approaches, the Bitcoin ecosystem is poised for renewed vitality.
In 2023, the digital asset space witnessed the rise of inscriptions—a trend fueled by protocols like Bitcoin's Ordinals, with ORDI emerging as a pioneer. The appeal of inscriptions lies in their Fair Launch model, which eliminates pre-mining and private sales, distributing tokens equitably to community members. This approach has driven widespread adoption and community engagement.
Market Background
Key Trends
- The Ordinals protocol (launched January 2023) sparked a frenzy on Bitcoin, enabling BRC-20 and Ordinals assets like ORDI.
- ORDI’s value skyrocketed from $1 per inscription to **$90,000**, showcasing the potential for wealth creation.
- Surge in activity caused Bitcoin Gas fees to peak at 600 s/vb (May/November 2023), with single-day block fees nearing 3.5 BTC—a 3-year high.
Data Snapshot:
- Stable inscription minting volume (Source).
- Ethscriptions surpassed 359K inscriptions with 165K users (Source).
Inscription Protocols by Chain
Bitcoin
Ordinals Protocol
- Uses "sats" (satoshi units) to embed unique data (text/images) directly on-chain.
- Ensures immutability via Bitcoin’s ledger.
BRC-20
- Token standard akin to ERC-20, but relies on off-chain indexing (centralization risk).
- Example: $ORDI (first BRC-20 token).
Atomicals (ARC-20)
- Binds tokens to UTXOs (1 token = 1 satoshi).
- Challenges: Requires full-node participation; technical barriers.
Ethereum
Ethscriptions
- Low-cost data sharing via Ethereum call data.
- Features a VM (ESC VM) for computations.
iERC20
- Integrates Swap + EVM cross-chain functionality.
- Uses PoW/DPOS for decentralization.
Solana
SPL-20 (SOLS)
- Similar to BRC-20 but for Solana.
- Traded on Magic Eden (floor price: 42.43 SOL).
Avalanche
ASC-20 (AVAL)
- 21M supply; backed by Ava Labs CEO.
- Generated $9.72M in daily fees (December 2023).
SUI
Sui-20 (ISSP)
- Combines Launchpad/Marketplace/Swap.
- Uses native indexers for stability.
Polygon
PRC-20 (POLS)
- First EVM-chain inscription.
- Caused Polygon Gas spikes (88K Gas/day peak).
Other PoW Chains
DRC-20 (Dogechain)
- Leverages Dogecoin’s low fees/meme culture.
- Example: $UNIX (36.2K holders).
Challenges & Outlook
- Issues: High fees, liquidity gaps, infrastructure limits.
- Strengths: Bitcoin/Ethereum demonstrated resilience under pressure.
- Future: Inscriptions could evolve with improved scalability and use cases.
FAQ
Q: What’s the difference between BRC-20 and ARC-20?
A: BRC-20 uses off-chain indexing, while ARC-20 binds tokens to UTXOs for true decentralization.
Q: Why did Ethscriptions gain traction?
A: Its VM enabled complex computations, attracting developers.
Q: Are inscriptions a sustainable trend?
A: While volatile, their Fair Launch model aligns with crypto’s ethos—innovation will determine longevity.
👉 Explore more about inscription protocols
Data sourced from Dune Analytics, DeFiLlama, and chain-specific explorers.
### **Key Features**: