Best BRC-20 Tokens

Best BRC-20 Tokens in 2024

Our team conducted a thorough analysis of all trending BRC-20 token projects in the Bitcoin ecosystem to determine which were the best. This thorough evaluation aims to guide investors to the most promising and credible BRC-20 tokens in 2024, while also simplifying complex terms and technical mechanisms.

Our methodical approach includes evaluating critical factors such as seamless integration with Bitcoin's infrastructure, innovative use of JSON inscriptions, scalability potential, project feasibility, and strong market demand.

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1. Ordinals (ORDI)

Ordinals is the protocol that introduced the concept of inscriptions on the Bitcoin blockchain, a method allowing unique data to be inscribed onto individual satoshis, BTC's smallest unit. The BRC-20 token standard, although often associated with Ordinals, was actually developed separately by an anonymous developer known as "domo".

ORDI was the first BRC-20 token created using this standard, but it's important to note that the meme coin is distinct from the original Ordinals protocol. Its origins were more about experimenting with Bitcoin's inscription capabilities rather than tokenization of the origin project.

Interestingly, the creator of Ordinals later launched Runes, a competing protocol to BRC-20, that further split Bitcoin's ecosystem. ORDI is the first and still the best BRC-20 token with a market cap of $672 million and between 25 and 26 thousand current holders.

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2. SATS (1000SATS)

SATS, also known as 1000SATS (a different denomination of the same coin), is another BRC-20 token that brings even more confusion to Bitcoin's terminology. The name is created in honor of BTC's creator, Satoshi Nakamoto; however, it's important to emphasize that neither SATS nor 1000SATS represent the actual value of 1 satoshi (0.00000001 BTC).

Instead, these tokens are purely digital assets created using the BRC-20 standard, which allows for fungible tokens to be inscribed on the Bitcoin blockchain. This distinction is crucial to understand, as the price of SATS and 1000SATS is derived solely from market demand and speculation rather than being backed by or exchangeable for real satoshis.

Then why is 1000SATS the second-best BRC-20 token? Simply because of the market price. 1000SATS has achieved a market cap of $651 million, at times even surpassing ORDI. Furthermore, the token has 52 thousand holders, the second highest after PIZZA, and the greatest number of transactions at over 21 million. Yet the supply of 2.1 trillion tokens dilutes individual token value.

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3. TRAC (TRAC)

TRAC, developed by BennyTheDev and launched in May 2023, is a multifaceted infrastructure project within the Bitcoin ecosystem of protocols. It acts as both an indexer and an oracle, providing a comprehensive toolset for navigating Bitcoin’s vast data blockchain. TRAC Core, the project's backbone, continuously updates and organizes onchain data, making it accessible for analysis and application through APIs.

The project also includes the TAP protocol, which enables complex financial operations like staking and liquidity pooling directly on Bitcoin’s network. Additionally, TRAC integrates with Pipe, a protocol that enhances Bitcoin’s transaction model with advanced NFT functionalities.

The TRAC ecosystem is designed to support the next wave of Bitcoin adoption by providing essential tools and governance mechanisms, all anchored by the BRC-20 TRAC token, which powers and governs its decentralized architecture, similar to many DAO-led DeFi protocols on Ethereum and Tron.

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4. Pups (PUPS)

Pups is a BRC-20 token, a prominent player in the ongoing Bitcoin meme wars, and another confusing use case for the chain. This token is intricately linked with Rune Pups, a collection of digital assets on the Bitcoin blockchain created using the Runes protocol at the most recent Bitcoin halving in 2024.

The PUPS token has also recently been added to Solana with a cross-chain bridge available for Bitcoin token holders. Therefore, PUPS is available as both a BRC-20 token on Bitcoin, a tradable asset on Solana's NFT marketplace, Magic Edgen, and a Bitcoin Rune.

The token’s distribution is split between BRC-20 holders and Rune Pups ordinal holders, with various scenarios leading to different allocation outcomes. To top it off, the project's X account was hacked right around its launch, creating even more uncertainty around it. Still, at $24 million market capitalization, the BRC-20 version of PUPS is among the most popular Bitcoin tokens.

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5. Merlin Chain (MERL)

Merlin Chain is the top Layer 2 chain for Bitcoin, aimed at improving the network's efficacy through zero-knowledge (ZK) rollups and a decentralized oracle network. Launched by Bitmap Tech, the project integrates EVM compatibility, enabling Ethereum-based dApps to operate seamlessly on the Bitcoin network.

Merlin Chain’s zkEVM scales Bitcoin transactions by bundling them into compressed blocks, which are then validated and settled on Bitcoin's main chain, ensuring both speed and security. The project’s governance and utility are powered by the MERL token, a BRC-20 token that facilitates staking, transaction fees, and ecosystem participation.

Merlin Chain has secured backing from investors such as OKX Ventures, ArkStream Capital, ABCDE, and Foresight Ventures. During its mainnet launch, the protocol quickly over $500 million in total value locked (TVL) within 24 hours.

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What are BRC-20s?

BRC-20 is a token standard on the Bitcoin blockchain that allows for the creation of fungible tokens using JSON inscriptions. Unlike Ethereum's ERC-20 tokens, BRC-20 tokens are inscribed directly onto individual satoshis, leveraging the Ordinals protocol to embed data within the Bitcoin blockchain.

Due to its simplicity and integration with Bitcoin's current infrastructure, this standard—introduced in March 2023 by an anonymous developer known only as "domo"—has since gained (and lost) popularity.

For more information on how to purchase, explore our detailed guide on purchasing BRC-20 tokens, offering a clear, step-by-step process.

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BRC-20s vs Ordinals vs Runes

While new protocols on Bitcoin have expanded its use cases, they have also added complexity to the ecosystem. Here's a simple overview of the three leading concepts:

• Ordinals: Protocol that allows for the creation of non-fungible tokens (NFTs) on the Bitcoin blockchain by inscribing unique data onto individual satoshis. It was primarily designed to bring NFTs to Bitcoin, enabling users to attach text and digital art to specific satoshis.
• BRC-20: This standard builds on the Ordinals protocol but is focused on creating fungible tokens instead of NFTs. BRC-20 uses JSON inscriptions on satoshis to create tokens that can be transferred and traded, similar to ERC-20 tokens on Ethereum. However, this approach can lead to blockchain bloat due to the large amount of data inscribed on the Bitcoin blockchain.
• Runes: A newer protocol developed by the creator of Ordinals. Runes offers a more efficient method for creating fungible tokens. It utilizes Bitcoin's UTXO model and the OP_RETURN opcode, which minimizes the data footprint and reduces the impact on the blockchain, addressing some of the inefficiencies seen with BRC-20.

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Are BRC-20s Dead?

BRC-20 tokens have seen a sharp decline in market share, now accounting for less than 10% of Bitcoin network activity. In contrast, the Runes protocol, launched in April 2024, has consistently captured the majority of daily transactions, with over 15.6 million Runes transactions recorded in just four months.

During its peak, Runes transactions represented up to 73.5% of the total Bitcoin network bandwidth. By July 2024, Bitcoin transactions regained dominance, making up 90% of the network activity, while BRC-20 and Runes combined for the remaining 10%. This shift highlights the waning interest in Bitcoin token standards, at least for now.

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Bottom Line

BRC-20 tokens have grown beyond their initial status as an "experimental protocol" and have seen considerable adoption in 2023. However, the sector remains complex and somewhat opaque, with many investors finding it difficult to fully understand or explain the underlying mechanisms.

More recently, the introduction of competitive protocols like Runes has further diluted the value proposition of BRC-20 tokens, challenging their market position. Despite these difficulties, speculative interest may still drive demand for BRC-20 tokens in a thriving bull market.

The top 5 BRC-20 tokens in 2024 are ORDI, SATS (1000SATS), TRAC, PUPS, and Merlin Chain's MERL. Some of them due to their contribution to Bitcoin's infrastructure, and others thanks to their first-mover advantage in their specific niche categories.