BTC isn’t the only Bitcoin token. New Bitcoin token standards like Runes Protocol allow for the creation of a thriving token economy.
This guide on Bitcoin tokens explores types of tokens, the top coins today, and how they benefit the Bitcoin ecosystem.
Bitcoin tokens are fungible tokens minted directly on the Bitcoin blockchain.
Fungible tokens first gained popularity on Ethereum, later on Solana, and a host of other chains. Various token standards like BRC20, Ordinals, and Runes Protocol gave developers the ability to create fungible tokens on Bitcoin. Currently, many Bitcoin tokens are meme coins built on the Runes Protocol token standard. As Bitcoin economy matures, we’re beginning to see new innovations and use cases develop.
The Bitcoin ecosystem token economy started with the launch of the Ordinals Protocol in 2023 by Bitcoin developer Casey Rodarmor. The Ordinals breakthrough sparked renewed interest in Bitcoin’s potential outside of BTC.
Ordinals inspired a wave of innovation, leading to the birth of the BRC-20 standard—a blueprint for issuing fungible tokens on Bitcoin. Soon after, Rodarmor introduced Runes, a protocol aimed at overcoming some technical limitations of BRC-20 and enhancing the overall token ecosystem.
What does this mean for the Bitcoin Network? It means that Bitcoin is no longer just a store of value, but also a platform for a diverse array of digital assets, each contributing to a vibrant and expanding ecosystem.
These days, there are several different types of Bitcoin tokens in existence. Let’s take a look at them.
Non-fungible tokens (NFTs) on Bitcoin became a thing when developer Casey Rodarmor created the Ordinals protocol. By identifying individual satoshis and attaching data to them, the protocol made uploading content to the Bitcoin blockchain much easier.
The Ordinals protocol attributes an ordinal number to each satoshi based on its mint time. This unique identifier gives satoshis non-fungible character and you can identify and choose which of the satoshis you want to use.Curious how to create your own ordinal? Use Magic Eden’s Ordinals Inscription Tool to attach anything from images of your cat to old poems directly onto Bitcoin!
Birthed by Ordinals, BRC-20’s entrance to the Bitcoin scene stirred up quite a revolution, considering it has paved the way for fungible tokens on Bitcoin, such as ORDI, SATS, and PIZA.
That said, BRC-20s have one major drawback. They create “junk”UTXOs (Unspent Transaction Outputs). Basically, these are “leftover” digital asset particles that you have received through transactions, but haven’t spent yet.
These junk UTXOs can choke up the network and make your wait longer until a transaction is confirmed. On top of that, the transaction would cost more. Thanks to one restless developer, this is where a new fungible protocol comes in.
Created to address BRC-20's limitations, the Runes Protocol has swiftly become a favorite for token creation on Bitcoin. It promises increased security, reliability, and ease of use, leveraging UTXOs for more robust on-chain data storage.
For developers, Runes simplifies the process of creating and managing tokens, while users benefit from a safer, more diverse selection of digital assets.
While fungible token trading on Bitcoin is dominated by BRC-20 and Runes, there are also a handful of other, lesser-known Bitcoin token standards.
Now, let’s take a look at the top tokens in the Bitcoin ecosystem. At the time of writing, the top ten largest Bitcoin ecosystem tokens issued on the Bitcoin blockchain by market capitalization include:
A testament to how popular dogs are in the crypto world, DOG•GO•TO•THE•MOON, or simply “DOG,” is a Runes token that was airdropped to Runestone Ordinals holders on the day the new fungible token protocol launched on Bitcoin. DOG quickly rose through the ranks in the meme token community, establishing itself as the number one Bitcoin meme coin.
A meme coin on the Bitcoin network and the inaugural BRC-20 token created using the Ordinals protocol, ORDI has quickly emerged as one of the most popular tokens in the Bitcoin token ecosystem. Despite BRC-20 tokens becoming less popular than Runes, ORDI is still one of the largest tokens on Bitcoin.
A BRC-20 token, SATS operates on the Ordinals protocol and shouldn’t be confused with ‘sats’ (the capitalization matters here) or satoshis, the tiniest Bitcoin unit. Yes, it’s a separate token
that has been listed on many exchanges after it established itself as one of the most popular BRC-20 tokens in the market.
While some might say it’s about Bitcoin developers, Bitcoin Wizards is actually a Bitcoin Ordinal project developed in homage to the original Bitcoin Wizard (originally called “Magic Internet Money”) created by the digital artist “mavensbot” and in celebration of the 10th anniversary of their work. What started as an iconic ad promoting the Bitcoin subreddit is today an important part of Bitcoin land. The WZRD token pays homage to the original Bitcoin Wizard.
If you thought that PUPS•WORLD•PEACE or just “PUPS” refers to puppies, you would be wrong. Pups is actually a community-driven meme coin that is all about puppets (yeah, like hand or sock puppets) and world peace. You might have seen their logo around–a cartoon monkey wearing a beanie.
Tanuki is a meme coin inscribed as a Runes token and represents a Japanese raccoon dog with a goal to “bridge ancient wisdom with modern decentralized technology.” But, in line with his character, he is also playful and mischievous, as if to tell us that life shouldn’t be taken too seriously.
To show that the crypto community isn’t just dog people, here comes the BILLION•DOLLAR•CAT, also known as the Bitcoin Cat or Billy Cat, another meme token. Although it has been bridged to Solana as well since its launch, it remains originally a Bitcoin meme token, as it demonstrates with the familiar Bitcoin glasses.
Far beyond a mere cryptocurrency, Trac is an Ordinals token built on the BRC-20 token standard developed as a tool for data management within the Bitcoin ecosystem. The team says this is a decentralized indexing and oracle network serving Bitcoin.
Although the word ‘zbit’ has a specific meaning, as in “zettabit - a unit of information equal to 1,000 exabits or 10^21 bits,” the ZBIT token itself refers to an entirely different thing. Also known as “Blue Bitcoin,” ZBIT is the cornerstone of the first MMORPG game on Bitcoin, allowing you to buy physical and digital artifacts.
TRIO is the BRC-20 utility token of OrdinalsBot, a Bitcoin digital asset platform. Token’s primary role? To help you use this platform and give you the power to vote for OrdinalsBot’s future.
Source: Coingecko.com
If the idea of trading Bitcoin tokens has you excited, here’s how you can go about it on Magic Eden.
Examples of runes include UNCOMMON•GOODS, DOG•GO•TO•THE•MOON, PUPS•WORLD•PEACE, and BILLION•DOLLAR•CAT.
To buy, search for and pick out the desired Runes token from the list and choose the ‘Buy’ tab. Input the desired amount and hit the ‘Submit’ button. Review the order, click ‘Buy,’ and approve the transaction through your wallet.
Connect your wallet to the Magic Eden Runes Marketplace to list, buy, sell and swap Runes tokens.
In addition to BTC, many tokens comprise today’s Bitcoin ecosystem. Typically minted using the BRC-20 token standard or the Runes Protocol, Bitcoin tokens include the likes of ORDI, SATS, PIZA, DOG•GO•TO•THE•MOON, PUPS•WORLD•PEACE and BILLION•DOLLAR•CAT. But there are hundreds more tokens in the Bitcoin ecosystem as anyone can create and mint their own tokens on Bitcoin.
The information provided on this website is provided for general educational purposes only and is in no way financial or investment advice. Certain information may have also been provided to us or prepared by third parties; these materials are provided for convenience and are not an endorsement by Magic Eden. Magic Eden is not liable for any errors, changes or amendments to such information, including any actions taken in reliance on such information.
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