Feb 24, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — Mixed Economic Data Leads to Risk-Off Strategies

For the past two months, the strong U.S. economy has given investors confidence to invest in markets, even amidst looming tariffs and a stricter Federal Reserve Board. However, recent data indicates that this support may be weakening.

Last Friday, several reports on consumer sentiment, housing and services contributed to the S&P 500's largest loss of the year as it fell 1.7%, wiping out its weekly gains. In contrast, bonds experienced a rally, driving the yield on 10-year Treasuries down to 4.43%. The VIX {

the Chicago Board Options Exchange's (CBOE) Volatility Index

, known as the "fear gauge"] spiked, but remained below 20, signaling increased market anxiety.

Previously, optimism among investors was fueled by speculation regarding U.S. president Trump’s policies promoting disinflationary growth. However, mixed economic signals are now causing concern, particularly a report showing a decline in consumer sentiment alongside rising long-term inflation expectations — the largest drop since 1995. Additionally, existing U.S. home sales fell for the first time since September 2024, further complicating the outlook.

While January's job growth appeared solid, with 143,000 jobs added and the unemployment rate stable, institutional investors began the year with a pro-risk stance, optimistic about the U.S. economy’s trajectory. Yet, the recent volatility in economic data has prompted a reevaluation of strategies.

Weekly Crypto Highlight — SEC May Drop Lawsuit Against Coinbase

Coinbase announced that the U. S. Securities and Exchange Commission (SEC) has agreed to drop its lawsuit accusing Coinbase of operating an illegal exchange, pending Commissioners’ approval. Following this news, Coinbase shares initially surged in premarket trading, but fell by 4% to $246.30 as of midday in New York. Bitcoin also declined by about 1%, trading at around $97,000.

This decision signals a shift from the aggressive regulatory stance of former SEC Chair Gary Gensler, who faced criticism from the crypto industry for enforcing regulations through lawsuits. Last week, the SEC likewise requested a pause on a similar case against Binance, highlighting ongoing developments regarding a regulatory framework for digital assets.

The SEC's complaint will be unfairly dismissed, meaning it cannot be refiled. Coinbase CEO Brian Armstrong stated that this dismissal will entail no fines or changes in the company’s operations.

Coinbase has actively engaged in Washington, D.C., donating millions to support pro-crypto candidates and recently adding Chris LaCivita, a former Trump campaign manager, to its advisory council. Armstrong has also communicated with Trump directly.

The SEC initially sued Coinbase in June 2023 amidst a broader crackdown on the digital asset industry following the 

. Gensler had claimed that many tokens fell under SEC jurisdiction. 

The dismissal alleviates a significant burden on Coinbase, allowing it to list more tokens and refocus on product development, rather than legal defenses. This outcome removes a key litigation risk, enhancing Coinbase's capacity to innovate. The company recently reported strong fourth-quarter earnings, and now aims to collaborate with Congress and regulators in order to establish clearer rules for the crypto landscape.

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Weekly Institutional Insights: Mixed Economic Data Rattles Market; SEC May Dismiss Lawsuit

Learn everything you need to know about Bybit's recent security incident and the next steps in this article.

Security breaches have shaped the cryptocurrency industry for over a decade, forcing exchanges to evolve, users to become more cautious, and regulators to tighten their oversight. From the infamous 

 collapse to the Binance security breach and 

, history has shown that while no platform is immune to threats, those that respond swiftly and transparently can emerge stronger than ever.

 where over $1.5 billion worth of ETH and stETH were compromised, and while any breach is a serious concern, our rapid response and transparency set us apart from past incidents. Unlike FTX, where billions disappeared in mere hours due to mismanagement, Bybit immediately secured assets, froze affected wallets, and maintained full platform operations. Funds remain backed 1:1, and users can continue to trade, withdraw, and deposit without disruption.

Looking at past events, we can understand how crypto security has evolved, what lessons were learned, and what the industry must do next to ensure a safer future.

A Look Back: The Most Notorious Crypto Hacks That Changed the Industry

One of the earliest and most devastating exchange hacks, 

 — valued at $450 million at the time, but worth over $36 billion today. The platform’s weak security, lack of cold storage, and failure to detect suspicious transactions led to its downfall.

The lesson was clear: Exchanges must prioritize secure wallet management, rigorous internal controls, and transparency. The Mt. Gox collapse led to better industry-wide custodial practices, ensuring that no single exchange could operate without proper security measures in place.

 due to a smart contract vulnerability. In a surprising turn of events, the hacker returned the funds, proving that on-chain tracking and community response could play a key role in recovering stolen assets.

The attack showed that DeFi projects need more rigorous security audits and multi-signature controls to prevent exploits at the smart contract level.

Unlike traditional exchange hacks, FTX’s downfall wasn’t due to external attackers but rather internal mismanagement and misuse of customer funds. In just two hours, billions of dollars were withdrawn, leaving users helpless as the platform collapsed.

This event reshaped the industry by accelerating Proof of Reserves (PoR) adoption, a transparency measure that allows users to verify an exchange’s solvency. FTX’s failure highlighted the need for stricter regulations, better internal accountability, and clear asset-backing policies.

In October 2022, Binance suffered a $570 million hack after attackers exploited a vulnerability in BSC Token Hub, a cross-chain bridge used to transfer assets between blockchains. The exploit allowed hackers to move 2 million BNB tokens off the network. 

Binance’s swift response helped limit the damage, with the exchange pausing the BNB Chain for several hours. This attack highlighted the risks associated with cross-chain bridges, reinforcing the need for stricter smart contract audits, real-time threat detection, and stronger validator coordination to prevent similar exploits in the future. 

Each of these incidents led to major security advancements and industry-wide improvements. Now, Bybit faces its own challenge — and just like Binance and other top exchanges, we are committed to coming back stronger than ever.

How Exchanges Have Improved Security Over Time

The best exchanges don’t just survive hacks—they emerge stronger by adopting new security protocols, improving transparency, and prioritizing user protection.

One of the most significant changes has been the shift to cold storage dominance, where most exchanges now keep 90% or more of user funds in offline wallets to minimize exposure to potential attacks. Security audits have also become an industry norm, with regular penetration testing, bug bounty programs, and white-hat hacker collaborations helping to identify and fix vulnerabilities before they can be exploited.

User protection funds, like Binance’s SAFU, have set a new standard for ensuring users don’t bear the cost of security breaches. AI-powered fraud detection and real-time transaction tracking have also become essential tools for identifying suspicious activity before it escalates.

Beyond individual exchange improvements, the broader industry has adapted through regulatory changes. Proof of Reserves (

) has become a key transparency measure, allowing users to verify an exchange’s solvency. Licensing requirements and exchange accountability frameworks have also become more stringent, making it harder for bad actors to operate unchecked.

How Bybit’s Response to the Crypto Hack Sets a New Standard

The way an exchange responds to a security incident defines its long-term reputation and user trust. Over the years, some platforms have struggled to manage hacks transparently, while others have turned crises into opportunities to strengthen security. Bybit’s response to this incident demonstrates our commitment to transparency, operational resilience, and user protection.

The speed of response is one of the most critical factors in mitigating damage during an attack. Bybit acted immediately, isolating affected wallets and preventing further losses. Unlike past incidents where breaches went undetected for hours or even days, Bybit’s security teams responded in real time. The ability to contain the situation quickly is a testament to our proactive monitoring systems, robust security protocols, and dedicated cybersecurity team.

Full Transparency and Real-Time Communication

Many users lose confidence in exchanges when there is a lack of clear communication during a crisis. From the start, Bybit has maintained full transparency, providing regular updates to reassure users that their assets remain secure and backed 1:1.

Rather than delaying information or releasing vague statements, Bybit has been upfront about the incident, outlining the exact steps taken to contain the breach and reinforce security. This level of openness is crucial in maintaining user trust and setting a new industry standard for responsible crisis management.

One of the biggest concerns during an exchange hack is whether users will face withdrawal restrictions or see trading halted. Bybit ensured that trading, deposits, and withdrawals remained fully operational throughout the incident.

This highlights the exchange’s financial strength and liquidity, ensuring that user funds were not affected. No restrictions were placed on withdrawals, and all assets remained backed 1:1. 

Bybit isn’t just focused on resolving the immediate issue; we are using this incident as a catalyst to further enhance security across the platform. While we already implement industry-leading security measures, we are now working with top blockchain security firms to audit our systems and implement even more advanced security solutions.

Bybit remains financially strong, with all user funds fully backed and secure. Our commitment to industry-leading security practices, user transparency, and rapid response times ensures that we will emerge from this incident stronger than ever.

As the crypto industry continues to evolve, Bybit is setting a new standard for how exchanges should handle security challenges — with transparency, operational resilience, and an unwavering commitment to user protection.

While exchanges continue to improve security, users must also take proactive steps to safeguard their assets. Here’s how you can strengthen your crypto security:

 or SMS-based 2FA to add an extra layer of protection. This prevents unauthorized access even if your password is compromised.

Use withdrawal whitelisting to ensure only pre-approved wallet addresses can receive funds. This minimizes risks from phishing scams or unauthorized transactions.

If you’re holding large amounts of crypto, consider hardware wallets like Ledger or Trezor. Unlike exchange hot wallets, cold storage keeps assets offline and safe from cyberattacks.

Hackers often exploit major security incidents by impersonating exchange support teams. Always:

Enable transaction alerts to receive real-time notifications for any account activity. Report any suspicious actions immediately to Bybit support.

By following these best practices, you can further protect your assets even during uncertain times.

The Bybit incident reinforces the need for continuous security improvements across the industry. Moving forward, we can expect:

Stricter Security Standards for Exchanges

Regulators may push for mandatory insurance funds to protect users in the event of security breaches. Additionally, exchanges will be expected to adopt stronger internal controls and more frequent security audits.

To combat sophisticated attacks, exchanges will likely invest in AI-driven risk monitoring that detects anomalies before a hack can escalate.

Greater Transparency and Proof of Reserves

 to ensure their funds are secure. Bybit remains committed to maintaining full backing of user assets and transparent operational updates.

More exchanges may introduce hybrid custody models, where users can trade while maintaining partial self-custody of their assets.

Crypto’s Strength Lies in Solidarity: Bybit’s Gratitude to Partners and Users

One of the most powerful takeaways from this incident has been the overwhelming support from our partners, industry leaders, and users. As soon as the news broke, top security firms, blockchain analytics teams, and exchange partners reached out, offering their expertise and assistance to track the stolen assets and enhance security.

We are incredibly grateful for the outpouring of support from our community. Crypto has always been an industry built on resilience and collaboration, and this event has reinforced that when one exchange is attacked, the industry stands together to protect users and strengthen security.

Bybit would like to extend a heartfelt thank you to our partners, users, and the broader crypto ecosystem for standing with us during this time. Your trust, patience, and unwavering support fuel our commitment to come back stronger, set new security benchmarks, and continue providing a safe and innovative trading experience.

Bybit’s Commitment to a Stronger Future

Despite this setback, Bybit remains one of the strongest and most well-respected exchanges globally. Our response to this incident proves that:

Bybit’s journey doesn’t end here. We will continue to improve, evolve, and set new security standards for the industry.

The crypto space must learn from every challenge, and with greater security, transparency, and resilience, we can build a safer, more trustworthy future for all users.

The road ahead is clear — Bybit is here to stay, and we are stronger than ever.

For real-time updates, you may refer to our official channels such as the 

Beginner

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Hacks That Strengthened Crypto: Responses That Build a Safer Future For All

As of mid-February 2025, the cryptocurrency market is experiencing movements driven by economic pressures and regulatory movements. 

As of mid-February 2025, the cryptocurrency market is experiencing movements driven by economic pressures and regulatory movements. Recent inflation data has rattled financial markets, leading to a sharp reassessment of expectations for Federal Reserve policy. A higher-than-expected Consumer Price Index (CPI) report has caused Bitcoin to dip below $94.2K before rebounding to approximately $98.1K. This fluctuation illustrates how macroeconomic factors are increasingly influencing digital assets, mirroring trends seen since early 2022 when the Fed began raising interest rates.

Santiment data reveals that discussions around the terms “CPI” and “inflation” surged to 1.75% of all crypto conversations, the highest level since 2022. This heightened sensitivity indicates that when markets are stagnant or declining, economic news is met with increased concern and fear, often leading to sell-offs. Despite the increased uncertainty, Bitcoin has demonstrated resilience, staying above the $98K mark. Nevertheless, continued inflation could lead to further volatility in risk assets such equities and crypto.

The LIBRA scandal has further complicated the crypto landscape. Argentine President Javier Milei's endorsement of the cryptocurrency led to a dramatic rise — and an even more significant fall in value, as it plummeted by 80% within days. Allegations of fraud surrounding Milei have intensified scrutiny of speculative assets, particularly meme coins, leading to a crisis of confidence among investors.

The fallout from this scandal reflects a broader trend of growing impatience with high-risk assets. Retail sentiment has turned bearish, as evidenced by increased mentions of selling across social media platforms. This shift highlights the need for thorough research before investing in speculative projects. The LIBRA incident serves as a stark reminder of the risks associated with relying solely on endorsements for investment decisions, prompting many traders to seek more stable and established cryptocurrencies.

Emerging Opportunities and Investor Behavior

Litecoin is gaining traction, driven by the possibility of a spot ETF approval that could pave the way for broader access to altcoins, further maturing the crypto market. As discussions around the term “Litecoin ETF” spike, market analysts are optimistic about the likelihood of approval, which could enhance investor interest in Litecoin and similar assets.

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Bybit x Santiment: LIBRA Scandal Gives Rise to Meme Coin Crisis; Litecoin ETF Anticipations Build Up

KAITO is the core currency of Kaito AI’s InfoFi ecosystem, enabling transactions, governance, staking, and community engagement.

The S&P 500 fell 0.43% amid Walmart’s weak outlook, with investors eyeing PMI and home sales data next. Gold rose 0.23% to $2,939 on safe-haven demand but retreated from a $2,954 high. Traders await S&P Global Flash PMIs. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 0.02%, with Bitcoin and Ether rising by 2.46% and 0.69%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is BERA, which surged nearly 15.8% after The Graph integrated Berachain Mainnet on day one, enabling seamless onchain data access.

Berachain (BERA), founded in 2021, is a Layer 1 blockchain with Proof-of-Liquidity consensus, ensuring security and liquidity while maintaining full Ethereum compatibility. The Graph has 

 support for the newly launched Berachain mainnet from day one. Developers can now query Berachain data using Subgraph Studio, making it easier to organize and access onchain data. This integration enables the creation of fast and efficient frontends for Berachain-powered dapps.

Check Out the Latest Prices, Charts, and Data of 

 is the core currency of Kaito AI’s InfoFi ecosystem, enabling transactions, governance, staking, and community engagement. The total supply is allocated as follows: 56.67% to community and ecosystem initiatives (including ecosystem growth, creator incentives, and liquidity rewards), 25% to core contributors, 10% to the foundation, and 8.3% to early backers. Distribution is merit-based, using AI-driven assessments of engagement, governance participation, and long-term alignment with Kaito’s vision. Staking provides rewards and voting rights, ensuring active participation. A claim process for KAITO will be announced soon.

Yesterday, BTC Spot ETFs recorded a net outflow of $252.8M, including $33.5M from GBTC and $219.3M from non-GBTC funds.

. With $43 million in funding, this presents a valuable opportunity. To maximize your points, complete the "Generate at least one transaction on Sahara Testnet" task by sending a small amount of SAHARA via Metamask. This earns 20 points, a significant amount compared to other tasks. Ensure you take full advantage of this opportunity.

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KAITO Powers the InfoFi Ecosystem with Governance Staking and Community Rewards

Bybit Learn

Bitcoin

The CAT20 token standard leverages Bitcoin's security and UTXO model to build advanced Bitcoin-based fungible tokens with high composability and smart contract-like functionality, 

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 (ETH) blockchain appeared on the horizon in 2015 with its 

 (DApps), many in the blockchain industry assumed that 

 (BTC) would eventually fade into obscurity. The world's oldest blockchain simply didn't have any of the novel features that its younger rival boasted. Fast-forward to nearly a decade later, and several innovative protocols and token standards have ushered in the era of a totally new Bitcoin, one featuring its own NFTs, fungible tokens and even smart contract–like functionality.

 protocol has enabled Bitcoin-based NFTs. The BRC-20 token standard, based on the same ordinal inscription theory, then introduced the ability to create fungible tokens on the chain. Soon afterward, the 

 protocol opened up a way to create fungible assets much more lightweight than 

 tokens. With all of these innovations, it seems that Bitcoin has finally found its groove in the new blockchain world.

In September 2024, another potentially paradigm-changing token standard, CAT20, was proposed for the Bitcoin network. CAT20 allows developers to create Bitcoin-based fungible tokens that adhere to both the blockchain's native standards and the 

 (UTXO) model, while introducing high composability levels, creating opportunities for complex smart contract–like functionality.

 is a new proposed fungible token standard for the Bitcoin blockchain (

The standard was proposed in September 2024 by the CAT Protocol team, and is applicable to any blockchain that supports the OP_CAT opcode. Opcodes are special scripts that instruct blockchain transactions to perform certain operations. The Bitcoin blockchain supported the OP_CAT opcode until 2010, when the platform's anonymous founder, 

, removed it due to security and transaction efficiency concerns.

Currently, there's a revived interest in OP_CAT within the Bitcoin user community, and several parties have proposed its reintroduction. If OP_CAT is re-enabled on Bitcoin, CAT20 will likely move from a proposed state to a fully implemented standard on the chain. Among the blockchain networks that currently support it is Fractal Bitcoin (FB), a 

 sidechain solution that supports higher speeds and scalability levels for Bitcoin transactions.

The recently proposed CAT20 standard is not to be confused with the much earlier (and unrelated) CAT20 standard for compliant security tokens and tokenized securities, 

To understand CAT20 tokens, it's crucial to be aware of what the OP_CAT opcode does. Originally available on Bitcoin, it lets developers con

enate (hence the name) two pieces of data together, potentially opening a way to create complex transaction functionality. However, OP_CAT also has a certain potential to be exploited for running denial-of-service (DOS) attacks and congesting the Bitcoin network.

Due to these vulnerabilities, Satoshi Nakamoto disabled OP_CAT, along with several other opcodes. OP_CAT, which the CAT20 standard heavily relies on, still isn’t functional on Bitcoin as of early October 2024. The primary rationale behind Nakamoto's decision probably lay in the desire at the time to keep Bitcoin strictly an environment for secure asset transfers and storage.

However, in the past few years, the blockchain has moved beyond its original state, with protocols and standards like BRC-20, Runes and Ordinals Inscriptions ushering in an era of a higher degree of network activity. Additionally, a variety of Bitcoin-linked Layer 2 solutions have contributed to the chain's ecosystem development. 

With all of these technologies now fully operational on the Bitcoin network, many of its community members have questioned the need to keep OP_CAT disabled.

At the end of the day, if BRC-20 tokens are allowed to proliferate on the chain, and various Layer 2 protocols have introduced smart contract-like functionality for it, why would an exception be made for OP_CAT? Voices clamoring to re-enable OP_CAT are growing louder by the day, and there's an expectation that the opcode may be switched back on. 

If and when that happens, CAT20 can support the creation and use of Bitcoin tokens with a significant degree of composability. Significantly, this could open up opportunities to leverage a variety of DApps within the Bitcoin ecosystem.

How Does the CAT20 Standard Affect the Bitcoin Blockchain?

Because CAT20 tokens are highly composable and modular, they could significantly increase the sophistication of Bitcoin transactions, potentially paving the way for full-fledged DApp functionality directly on the network.

At the same time, the ability to provide sophisticated functionality may lead to congestion on the network, due to the amount and complexity of operations these tokens are capable of producing. Bitcoin already struggles with the new standards and protocols — BRC-20, Runes and Ordinals Inscriptions — that have led to a large spike in activity on its network. The introduction of CAT20 tokens on the blockchain could further increase traffic levels.

CAT20 tokens adhere to Bitcoin's underlying security mechanism, which is based on the 

 (PoW) mining procedure. It’s been instrumental in establishing the blockchain's reputation as a highly secure transactional environment. By leveraging PoW, CAT20 tokens would ensure that their operations are protected to the same level as native BTC assets.

Besides PoW, another element that ensures Bitcoin's security is its well-regarded UTXO transaction model, whereby Bitcoin balances and transfers are represented by outputs from earlier transactions. CAT20 tokens are based on UTXO and directly leverage Bitcoin's own script at 

. This means that these tokens don't need to rely on off-chain indexers — software used to organize transactions and simplify the querying of the blockchain.

The CAT20 standard creates opportunities for cross-chain operations, as it can be implemented on any network that supports the OP_CAT opcode. We noted above that the Fractal Bitcoin Layer 2 sidechain is an example of a network with OP_CAT support. Besides Fractal Bitcoin, there are two notable Bitcoin forks with OP_CAT functionality enabled — 

CAT20 tokens have built-in functionality to support simplified payment verification (SPV). This technology allows lightweight clients such as mobile phones to verify the authenticity of CAT20 tokens in a decentralized and efficient way.

Although CAT20 holds certain potential for cross-chain interoperability, the existing network of chains that support OP_CAT (and which could thus theoretically support CAT20) is quite limited. The Fractal Bitcoin project is a new Layer 2 solution, still in the early stages of its market presence, while Bitcoin Cash and Bitcoin SV are minor players in the world of smart contract–capable chains. These two platforms both support some degree of smart functionality using their own unique mechanisms. 

Still, their DApp capabilities are far behind those of Ethereum and other smart contract chains, such as 

 (SOL). As such, the token standard's potential reach is relatively restricted, especially since OP_CAT is still not operational on Bitcoin itself.

CAT20's ability to support complex, composable functionality can potentially lead to network congestion, due to both the large amount of processing required and the general increase in demand for DApps. Bitcoin already struggles with the issue of congestion, and the introduction of CAT20 might exacerbate this problem. 

The chart below shows the number of Bitcoin transactions over the past three years (to Oct 6, 2024). It’s impossible to miss the gradual rise in network activity over the previous year or so:

The CAT20 standard is still in the early stages of its development. It’s been newly introduced and promoted by the CAT Protocol, and many practical details of its implementation have yet to be defined or made public.

The rise in on-chain activity and DApp usage that CAT20 could spur would likely affect not only network congestion levels, but also transaction costs. Bitcoin is already facing increases in these costs, due to the flurry of activity related to BRC-20 tokens, Runes tokens and Ordinals Inscriptions NFTs. With the arrival of CAT20, the costs of transacting on Bitcoin may rise further.

CAT20 has a number of advantages over the BRC-20 fungible token standard. First, unlike BRC-20, CAT20 requires no off-chain indexers. With all of its operations conducted strictly on-chain, CAT20 tokens enjoy both higher efficiency and a better security profile than BRC-20 assets do. Additionally, CAT20 technology allows for far more flexible and sophisticated functionality than what the BRC-20 token standard can provide.

CAT20 tokens share certain similarities with Runes, another highly popular fungible token variety on Bitcoin. Both tokens largely leverage the on-chain environment for their functionality, although Runes does require indexers while CAT20 doesn’t. Both standards can be lightweight, though in the case of CAT20 it largely depends upon the actual token design and intended functionality. In addition, both Runes and CAT20 tokens leverage Bitcoin's UTXO model.

However, the critical difference between these two token technologies is that CAT20 tokens can be used to enable fairly sophisticated DApps, ranging from 

 protocols. In contrast, the Runes protocol has mostly been confined to supporting 

ARC-20 is a standard designed for fungible tokens that supports digital ownership management and asset representation for collectibles and NFTs. While ARC-20 is a fungible token standard, its main focus is on digital representation for distinct items and NFTs. In contrast, CAT20 is designed for fungible tokens with diverse applications and use cases. 

While both token standards could potentially have use cases in 

 (DeFi) or other DApp niches, CAT20 assets are capable of supporting more sophisticated and programmable functionalities.

As of the time of this writing Oct 8, 2024), the future of the CAT20 standard is highly dependent upon whether and when the OP_CAT opcode is re-enabled on Bitcoin. This will be determined by the overall Bitcoin community via online discussions and proposal deliberations. Unlike some chains with highly structured on-chain governance processes, Bitcoin has a flexible, mostly off-chain and less structured process of making decisions on matters as important as the reintroduction of critical opcodes.

CAT20 was proposed in September 2024 and active discussions are ongoing. It might take the Bitcoin community a few weeks or months to decide on this issue. Of course, there's always the possibility that OP_CAT’s proposed reintroduction could either be rejected or left in limbo for an extended period.

The CAT20 standard is a significant step forward for Bitcoin, due to CAT20’s potential for relatively sophisticated programmability, reliance on Bitcoin's underlying security mechanism, UTXO-based nature and cross-chain interoperability. However, concerns about network congestion and rising transaction fees are running high within the Bitcoin community right now, primarily due to the avalanche of activity related to BRC-20, Runes and Ordinals Inscriptions. 

Nevertheless, there's hope that the Bitcoin community is capable of distinguishing between technologies that are mostly suitable for meme coin acrobatics, and those that can provide useful DApp-like functionality. At the very least, the team at CAT Protocol hope so — and will be keeping their fingers crossed. If OP_CAT is re-enabled, expect CAT20 tokens to become a new hit on the world's largest blockchain network.

What Is the CAT20 Standard & How Does It Work?

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