Binance Records Its Largest-Ever Bitcoin Outflow Amid Repeated Withdrawal Halts as the Interest Around BRC-20 Tokens Attracts a Wave of “Dust” Transactions

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All is not well in the crypto heartland. Bitcoin is experiencing an anomaly where a decline in active addresses is perversely aligning with increased network congestion. And now the ensuing volatility quakes seem to have hit Binance hard, with the world's largest crypto exchange recording its largest-ever Bitcoin outflow over the past few hours.

For those who might be unaware, the Bitcoin Ordinals Protocol recently made waves when it allowed for the creation of NFTs on the Bitcoin Network. Each Bitcoin can be subdivided into 100 million units called Satoshis (or Sats for short). The protocol allowed Bitcoin node operators to inscribe each Satoshi with data, including NFT-enabling smart contracts. This then gave rise to the Ordinals, which are NFTs that can be minted directly onto the Bitcoin blockchain.

To restate more concisely

I think BRC-20s explode in popularity, severely congesting Bitcoin transfers and damaging its primary use case (enabling trustless transfer of an SoV)

I think this congestion will lead to normie headlines that Bitcoin is broken, and price will tank https://t.co/W48elHcHYF

— kamikaz Ξ (@kamikaz_ETH) May 8, 2023

Recently, a new innovation has taken the Bitcoin ecosystem by storm. The BRC-20 is an experimental token standard that allows for the creation of fungible tokens using the Bitcoin Ordinals Protocol, where inscriptions of JSON data are used to deploy token contracts as well as mint and transfer the tokens.

BRC-20: start of a new era, or flash in the pan?

Let's talk about shitcoins on Bitcoin.

The BRC-20 megathread