![]() ![]() ![]() The lack of dedicated block explorers and marketplaces means it is difficult to track tokens or trade them on trusted exchanges. However, as newly established standards, these tokens have limited market infrastructure and liquidity. LRC-20 and DRC-20 tokens are trivially easy to mint with the help of wallets such as DPAL for DRC-20s. Although these are not as big as Bitcoin’s respective surges of 915% and 233%, they are still significant. The past two halving events for Litecoin occurred in 20, with price increasing 1,700% and 86% two years after each event, respectively. Historically, the halving event has proven to be a bullish catalyst for cryptocurrencies such as Litecoin and Bitcoin. Because Litecoin is a tangent of Bitcoin, it imported much of its monetary policy such as the reduction of new assets issued to miners every four years. The halving will reduce Litecoin’s block reward from 12.5 LTC to 6.25 LTC per block, lowering its annual inflation rate from 3.6% to 2.3%. It is important to note that Litecoin has another major milestone on the horizon when it will execute its third halving event in early August. But again, the impact on transaction fees for both networks has been negligible. This implies more data and user activity are flowing through the networks. The average block size has increased substantially for both networks since the launch of Ordinals, increasing 230% and 2,800% for Litecoin and Dogecoin respectively. There is always a fear that the same dynamic could impact Litecoin and Dogecoin. This may relegate lower value inscriptions to other networks like Litecoin or Dogecoin or Bitcoin-based layer-two solutions. There is also a chance that more infrastructure will develop around these new tokens on the networks that could make them easier to hold, transact, and provide more utility, but that is still a ways away.Īssuming Bitcoin remains the top network by market capitalization and usage, fees will substantially increase on the Bitcoin base layer, with the free market deeming only the highest value digital artifacts to be included in its limited blockspace over time. The results of the 2024 Presidential election may be encoded in the blockchain as an Ordinal, or Elon Musk’s last will and testament for his fortune may be encrypted and inscribed across chains to ensure its longevity over generations. Inscriptions could prove to be a powerful mechanism to enshrine timeless images, documents, and files that require the immutability, security, and perpetuity of resilient blockchains. ![]() However, it may not always stay that way. It is worth pointing out that the pseudonymous developer behind the original BRC-20 standard said himself that the tokens should be worthless. In their current form, these memecoins have zero utility and traders are piling in just to sell them to the next highest bidder. Speculative activity is inseparable from new innovations, as investors and traders pile into new narratives before the technology is able to mature. Bitcoin, Ethereum, Litecoin, Dogecoin transactions chart Bitinfocharts Outlook and Implications ![]()
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