BRC-20: The Token Revolution on Bitcoin—Everything You Need to Know

Still wondering why BRC-20 is so hot? This thing isn’t just a new concept—it’s completely changing how the Bitcoin network works, even directly causing gas fees to skyrocket. Today, let’s dig into this “game-changer.”

What is BRC-20?

Simply put, BRC-20 is a standard that lets you easily issue tokens on the Bitcoin chain. Since it was created by the engineer Domo in March 2025, tons of new tokens have sprung up. BRC stands for “Bitcoin Request for Comment.” Sounds official, right?

How does it work?

Here’s an interesting setup: BRC-20 actually borrows the Ordinal protocol, which was originally used to mint NFTs on Bitcoin. Since Bitcoin units of the same value are indistinguishable on-chain, you couldn’t make NFTs before. But Ordinals managed to turn Bitcoin into NFTs by recording images and text directly on the chain.

Now, although BRC-20 is based on this NFT protocol, it uses it to create all sorts of tokens (not NFTs). These tokens don’t rely on smart contracts for automatic execution; instead, they use JSON files stored on the Bitcoin network to enable user-to-user transactions. In short, JSON is a file format for storing structured data. While it’s widely used in crypto assets, it’s limited in functionality and can’t handle complex smart contract operations.

Are the numbers insane or what?

As of May 13, there were already over 14,000 BRC-20 tokens on-chain, with a total market cap of $530 million and a 24-hour trading volume of $200 million. The growth rate is absolutely wild.

Who’s the king?

ORDI (Ordinals) is the undeniable leader, with a $330 million market cap and $200 million in daily trading volume, basically dominating most of the liquidity in the BRC-20 ecosystem. There are plenty of other meme coins, but their size doesn’t even come close.

What’s the cost?

Here’s the catch. Sometimes, BRC-20 transaction volume even surpasses regular BTC transactions, leading to complete gridlock on the Bitcoin network. Transfer fees have surged to their highest levels in two years—some exchanges have even been forced to pause withdrawals.

There are two sides to this: high fees do incentivize miners to maintain network security, but regular users have to foot the bill. The congestion leads to a poorer transaction experience, which is a real blow to Bitcoin’s usability.

What’s next?

BRC-21 is already in development. Once it goes live, tokens issued on non-Bitcoin chains will be able to migrate to the Bitcoin chain. If that really happens, the whole ecosystem will change again.

Bottom line: BRC-20 is a double-edged sword. Innovation is great, but the pressure it puts on the Bitcoin network is definitely worth watching.