Binance has just introduced a newly listed coin called Ordinals (ORDI) on its exchange platform, which has led to a state of perplexity within the market.
The absence of a comprehensive explanation provided by Binance resulted in a misinterpretation among individuals, who mistakenly perceived the BRC-20 memecoin as an inherent token of the Ordinals system.
The meme currency had a notable surge of 120% inside a single day, contributing to its ongoing four-day rally, which resulted in significant gains.
The Ordinals DeFi protocol, which operates on the Bitcoin blockchain, has garnered significant attention in recent months and has emerged as a well-known entity within the trading and investment community. The inadvertent utilization of this level of familiarity appears to have been leveraged by a token that was launched on the Binance platform, subsequently leading to a surge in the value of a meme currency on Tuesday.
Binance introduces a novel meme currency on its platform.
On November 7, Binance issued a press release to inform the public about the inclusion of a newly introduced coin on their trading platform. Although token listings are often not considered noteworthy, Tuesday's release garnered significant market interest due to the misunderstanding around the cryptocurrency's identity. The cryptocurrency known as Ordinals, which is traded under the ticker symbol ORDI, had a significant surge of around 120% in its value.
While the meme currency is built over the Bitcoin network and functions as a BRC-20 token utilizing the Ordinals protocol, it should be noted that the coin does not serve as a direct representation of the underlying technology. Nevertheless, the depiction employed by the meme coin exhibited a lack of precision in terms of elucidating the essence of its genesis, since it explicitly said,
The aggregate quantity of bitcoins is fixed at 21 million, with each bitcoin being divisible into 100 million satoshi, representing the smallest unit of bitcoin. The entire number of satoshi is estimated to be 2,100 trillion. Inscriptions are generated by the process of composing textual material onto a satoshi utilizing the Ordinals protocol. The utilization of distinct tokens, side-chains, or Bitcoin is unnecessary for the inscription process facilitated by the Ordinals protocol. This protocol enables the encoding of many forms of information, including text, images, audio, and video, onto individual satoshis. The utilization of textual content and images is mostly employed for inscription purposes in Bitcoin blocks, owing to the inherent constraint on block size.
As a consequence, there was a misinterpretation among investors and dealers over the perceived value of the meme currency, leading to a subsequent surge in demand. The rally that ensued not only demonstrated a 40% increase over a 24-hour period, but also contributed to the cumulative gain observed over the preceding four days, resulting in an approximate total increase of approximately 100%.
As of the present moment, the meme currency is being traded at a value of $10.35, which is a notable peak during the past six months.
The recent surge in the value of DOGE and SHIBA can be attributed to the emergence of new meme currencies.
Dogecoin and Shiba Inu now hold prominent positions in the meme currency token hierarchy because to their substantial market capitalization. However, their recent performance does not reflect a leadership position in the meme coin market. On the contrary, the presence of developing cryptocurrencies or spontaneously popular meme tokens has been serving as a stimulant for the whole market.
During the preceding week, a cryptocurrency known as BONK, which operates on the Solana blockchain, exhibited a substantial increase in value, resulting in a significant upturn in the meme coin market with a remarkable surge of around 101% during a seven-day period. Likewise, throughout the previous 24 hours, ORDI has also stimulated the market for meme coins, leading to notable rises in Open Interest for Dogecoin and Shiba Inu that have surpassed those observed for Bitcoin.
