“Pepe Coin Skyrockets: Impact on Bitcoin Transaction Fees and Adoption of BRC-20 Standard”

The meme cryptocurrency Pepe Coin (PEPE), whose price has skyrocketed in the previous two weeks and ranked among Top 50 Cryptocurrencies by market capitalization, also affected the amount of transaction fees on the Bitcoin network.

Twitter spoon Ash Crypto for example, he pointed out that when investing 1000 dollars to Pepe Coin 20 days ago, on Friday, May 5, a coin holder of this cryptocurrency “in hand” would have a value of around 10 million dollars.

As for the impact on Bitcoin, on May 3 the total value of transaction fees paid on the Bitcoin network reached 3.5 million dollars, which is an increase of approx 400 % from the end of April. Looking at this data at the moment, it can be read that the average transaction on the BTC network costs today 8,80 USDwhile in April it hovered around the level 2 dollars.

Bitcoin overwhelms the new BRC-20 standard

The surge in fees on the BTC network is related to the surge in transactional activity on Bitcoin BRC-20 “tokens”. According to data from Galaxy Research, 50% of all Bitcoin transactions earlier this week were of this type.

BRC-20 is the ERC-20 token standard on Ethereum adapted for Bitcoin, which allows issuing and transferring fungible tokens on the BTC blockchain. It was introduced in March 2023 to on-chain analysts known under a pseudonym Domo.

Pepe Coin has caused a frenzy, but it doesn’t bring anything new

The popularity of this standard has grown exponentially thanks to memecoin PEPE, which has become a new passion for those who dream of getting rich quick. For some, this dream has apparently come true. However, many other BRC-20 “tokens” have also been created on BTC. The Contelegraph portal reports that there are already more than 8,500 of them.

PEPE coin is a typical meme cryptocurrency, which means that it has no meaning from the point of view of usage and long-term perspective. It does not bring any economic or technological innovation. Investing in this cryptocurrency, or in other similar projects, is therefore pure speculation and gambling.

In most cases, most investors will lose out on such an investment, while those who were early on will gain significantly due to the influx of capital from latecomers who are driven by FOMO (fear of missed opportunity).

Source: cointelegraph.comAuthor