Since the launch of the Fractal Bitcoin mainnet, hot projects have surged like a tidal wave. Following the sudden emergence of FLUX, which claims to be the first token protocol on Fractal, the new CAT Protocol has quickly emerged, capturing both public opinion and market interest.
“Have you CAT20-ed today?” has become a hot topic in the community.
According to official sources, CAT Protocol is a new Bitcoin token protocol based on UTXO, known as Covenant Attested Token (CAT). This protocol is validated by miners and uses smart contracts to manage token issuance and transfers. The CAT Protocol has the following features:
No Indexer Required: The token's rule set is guaranteed by Bitcoin consensus. Its data and logic reside on-chain and do not rely on any off-chain third parties (such as indexers) to operate. It inherits the proof-of-work security of native Bitcoin.
Modular: CAT tokens can be used in other smart contracts to build more complex decentralized applications (e.g., AMM, lending, and staking). It provides powerful and versatile new building blocks for expanding Bitcoin's application scope.
Programmable Minting: Token minting rules are executed by smart contracts. Over-minting transactions will be directly rejected by the network.
Cross-Chain Interoperability: The CAT protocol allows for trustless asset bridging between different blockchains, enabling applications to run across multiple blockchains.
SPV Compatible: CAT tokens support Simplified Payment Verification (SPV). Lightweight clients can independently verify the authenticity of tokens without relying on a central server.
The CAT protocol supports both fungible tokens (referred to as CAT20 standard) and non-fungible tokens (referred to as CAT721 standard). Currently, CAT721 has not yet been launched.
Although CAT20 initially attracted attention and spread among users, its popularity did not immediately surge. Before September 11, it could still be traded easily at a rate of 300-500 sats/vb. The turning point came on September 11 at 23:00, when UniSat updated the Fractal browser and added a "CAT20" tab. This instantly triggered a FOMO (fear of missing out) effect in the market, causing CAT20 to explode in popularity and also driving up the price of $FB. As of the evening of September 13, the progress of CAT20 protocol's CAT tokens had reached 84.83%, held by 36,100 addresses, showing strong growth momentum.
This seemingly casual update has sparked widespread speculation about “conspiracy theories” within the community. Many voices suggest that UniSat might be a key promoter or support team behind CAT20. At the same time, another theory circulating in the community is that the team behind CAT Protocol is likely the sCrypt Official team, which has been deeply involved in the OP_CAT field for a long time. Given their profound understanding and expertise with OP_CAT technology, the community believes that the sCrypt Official team could design such a comprehensive token protocol. Additionally, the style and font details revealed in CAT Protocol's official documentation are highly consistent with sCrypt Official's established style, further lending credibility to this hypothesis.
In addition to CAT Protocol's CAT20, there are now two other OP_CAT token protocols in the Bitcoin ecosystem. OPNET founder Danny has claimed that CAT20 was conceived in August and plans to activate it after block 21,000 on the Fractal mainnet. Meanwhile, Taproot Wizards and Quantum Cats co-founder Udi Wertheimer have launched the CATNIP protocol, which supports only the Bitcoin mainnet.
These three major OP_CAT-based token protocols have created a tripartite competition.
Since the beginning of the year, the rapid development and significant value increase of the Bitcoin ecosystem have led to the rapid rise of Bitcoin inscription tokens as a new force. This has not only triggered a strong wealth effect amidst market fluctuations but also sparked widespread discussion and attention. Despite the surge in inscription projects being accompanied by questions about their value logic, the enthusiastic market response has undoubtedly injected new vitality into the Bitcoin community, fostering innovation and development within the ecosystem.
Especially with the sudden emergence of the “cat competition” craze, many people, having not yet deeply understood the underlying significance of “inscribing,” have been swept up in this powerful trend. As the heat continues to rise, concerns inevitably arise: will this craze, like many past fleeting trends, quickly fade away, leaving behind a bubble and silence?
In response to such concerns, MEXC, as a responsible trading platform, calls on all market participants to invest rationally. At the same time, to meet market demand, MEXC has launched a Bitcoin inscription zone and introduced ultra-low trading fees, aiming to provide users with a more convenient and economical trading experience.
Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, consultation, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. The platform is not responsible for users' investment decisions.