Fungible Bitcoin tokens, following the BRC-20 standard, are experiencing significant losses just five days ahead of the Bitcoin halving and the simultaneous introduction of the Runes protocol.
Performance Analysis of Top BRC-20 Tokens in the Past Week
Over the past seven days, four of the top five BRC-20-based tokens by market capitalization—ORDI (ORDI), SATS (SATS), Multibit (MUBI), and Ordiswap (ORDS)—have experienced declines. Only Bitcoin Pups (PUPS) has seen an increase, surging by over 139% for the week, as reported by CoinGecko.
Source: CoinGecko
ORDI is currently trading at $42.67, marking a decrease of 43.3% over the week, while SATS is priced at $0.00000027, reflecting a decline of 45.6% in the last seven days. In contrast, Bitcoin Pups, a meme coin with a dog-themed motif, has continued to attract attention, skyrocketing by 1,000% last week to achieve a market capitalization of $365 million.
"Overall, BRC20 isn't experiencing a downturn. Meme tokens like Pups are on the rise. It's mainly Ordi that's facing a decline," stated Isabel Foxen Duke, General Partner at Unbroken Chain, in an interview reported by Decrypt. "Pups notably fueled the surge, and that's entirely due to Runes."
Meanwhile, less popular BRC-20 tokens are enjoying a strong start to the week. Piza (PIZA), currently priced at $1.50, has surged by 635.9% for the week, while Pepe (PEPE), trading at $0.63, has seen a gain of 137.5% for the week.
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Ordi Token Performance and Market Trends
Introduced in April 2023, Ordi was the inaugural token created using the BRC-20 standard established by the pseudonymous Bitcoin developer, Domo.
In March, ORDI reached a peak value of $95.52 and achieved a market capitalization exceeding $928 million. However, a gradual descent ensued in the subsequent weeks, resulting in a notable 53% decrease from its peak value. Consequently, this decline caused the once-popular token to drop out of the top 100 BRC-20 coins as of Monday.
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Altcoin Correlation and Liquidity Trends in Ordi Projects
"Ordi shows a clear correlation with altcoins rather than Bitcoin," Foxen Duke noted, attributing this trend to the significant volume dominance of centralized exchange OKX and the ongoing decline in altcoin values. Even cross-chain bridges, such as BRC-20-based EVM tokens, have not been immune to the downturn. Multibit's MUBI is currently priced at $0.15, down 1.9% for the week, while Ordiswap (ORDS) is at $0.13, marking a decline of 29.8% for the week.
According to Foxen Duke, liquidity is being withdrawn from various Ordinals projects in anticipation of the Runes protocol launch. However, she suggests that this liquidity may return to Ordinals once the hype surrounding Runes diminishes. "People are gearing up to trade into Runes," she remarked, emphasizing the desire for liquidity leading up to the halving to capitalize on opportunities presented by Runes.
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