PEPE Price Crashes as Bitcoin Coders Think of Removing All Memecoins

Bhushan Akolkar
June 5, 2023
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Memecoins running on the Bitcoin blockchain could be at risk as Bitcoin blockchain coders/validators want to remove them. This follows a massive surge in the Bitcoin blockchain gas prices in May last month amid strong network activity driven by Bitcoin-based memecoins like PEPE.

Soon as the news broke out, PEPE price has come crashing down by more than 6% in the last 24 hours. As of press time, PEEP is trading at $0.0000012

This led to a major logjam on the Bitcoin blockchain at one point while forcing crypto exchange Binance to halt withdrawals. Now, Bitcoin proponents and coders are contemplating that any future frenzied trading for memecoins such as PEPE will snarl the network while disturbing Bitcoin’s use for payments or as a store of value.

The Bitcoin coders are thinking of deploying software that will work as a spam filter and block memecoin transactions. Speaking to Bloomberg, Bitcoin developer Ali Sherief:

“I do think the system is being abused. Bitcoin was never intended to serve as a base layer for meme tokens. Worthless tokens threaten the smooth and normal use of the Bitcoin network as a peer-to-peer digital currency.”

However, others have come to defend Bitcoin Ordinals, working on the BRC20 standard, which allows the BTC blockchain to host large numbers of NFTs, memecoins, and other digital collectibles.

Developer Casey Rodarmor created Ordinals allowing users to inscribe digital content such as images, videos, and texts on Satoshis, the smallest unit of Bitcoin. Later, the development of Bitcoin Request for Comment — or BRC-20, led to a massive explosion of memecoins. Currently, the Bitcoin blockchain hosts 25,000 memecoins having a total market cap of close to $500 million roughly.

Bitcoin Memecoins Create Frenzy

At one point during the last month of May, NFTs alone accounted for 65% of the total transactions on the Bitcoin blockchain. During the last month, the average fee per transaction jumped as high as $30 before cooling down to $4 by the month-end.

However, this jump in the gas fees proved to be a boon for the Bitcoin miners who raked in $45 million alone from Ordinals-related activity.

Bitcoin developer Luke Dashjr, also categorized Ordinals transactions as spam and believes that they should be kept off the Bitcoin blockchain. In one of the developers’ groups, Dashjr wrote: “Action should have been taken months ago. Spam filtration has been a standard part of Bitcoin Core since day 1.”

Other crypto proponents also weighed in suggesting some interesting solutions. Some have suggested the possibility of creating a version of the Bitcoin blockchain, a hardfork, that supports only Ordinals.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.