Has Bitcoin Rune reached its peak? Runes development prospects

Has Bitcoin Rune reached its peak? Runes is developing like a prospect. The number of tokens on the Runes protocol has dropped from its peak, but it cannot be taken lightly. The protocol is less than three months old — and it’s just getting started. So has Bitcoin Rune reached its peak? What is the development prospect of Bitcoin Runes? Today, the editor of this website will give you a detailed introduction to Bitcoin runes. I hope you like it!

The 840,000th block mined on April 19, 2024 is special for Bitcoin Bitcoin $63,625. In addition to marking the fourth halving for the world's largest blockchain, it also marks the launch of the Runes protocol, currently the most popular protocol for creating fungible tokens on Bitcoin.

While token creation is common on blockchains such as Ethereum $3,510 or Solana $148, the practice is relatively new to Bitcoin, only becoming popular in 2023. The tokens on the Runes Protocol, launched in April, are even more novel.

In the past 15 years, traditional media has repeatedly declared that Bitcoin is dead. Likewise, some critics also believe that the tokens created on the Runes protocol are dead.

Looking at the daily trading volume of these assets and the number of new entrants, you might feel that Runes has indeed reached its peak. But given the history of premature statements about the end of Web3 assets, it's worth questioning whether this is true.

Token trends on Runes Protocol as of June 30, 2024. Source: CoinGecko

The first thing to consider is the macro context. Since the launch of the Runes protocol, Bitcoin has remained in a range between approximately $60,000 and $70,000.

Its dominance over all other crypto market assets (altcoins) has effectively remained sovereign during this period, showing a certain caution in the market when it comes to taking on more risk.

This directly affects the interest in Runes standard token. Although they belong to Bitcoin, they fall into the “altcoin” category and are not currently attracting widespread market interest.

However, as Roman Emperor (and Stoic philosopher) Marcus Aurelius said: “Focus on the things you can control, not the things you can’t.” Dedicated analysis of how rune ecosystems Evolution is crucial.

Quality of Runes Tokens

To date, almost all the tokens created on the Runes protocol have been meme coins. In addition to memes being one of the dominant narratives of 2024, they are also easy to create. Therefore, it is expected that Bitcoin's blockchain will initially be filled with meme coins, rather than tokens with strong token economics or tied to large-scale applications, because the market has not had time to create such a thing.

Of all the memes created, DOG tokens are the highlight. DOG Token’s success is due to a fair launch and a strong yet simple narrative: Bitcoin’s Dog Token

For years, dog-themed tokens dominated the memecoin market across all networks, and now Bitcoin has too own dog.

Runes Protocol’s DOG is worth just over $588 million,

Currently, DOG accounts for about 40% of the total market value of Runes tokens (worth about $600 million), with more than 70,000 on-chain holders. Its dominance highlights the industry's growth potential.

Dogecoin’s value Dogecoin $0.13 As the world’s largest meme coin, its value is still 28 times higher than Bitcoin and more than 10 times higher than the value of the entire Runes token ecosystem.

Evolution of Infrastructure

The infrastructure for interacting with Bitcoin has been a big friction since asset issuance within Bitcoin started to gain popularity in 2023.

In addition to wallets supporting these types of assets not being the most popular in the Ethereum or Solana ecosystems, Bitcoin also lacks smart contracts - which makes creating decentralized exchanges (DEXs) and markets, for example, difficult difficulty. This makes trading Bitcoin assets much less fun compared to assets on other networks.

Some major players see this as a great challenge and opportunity. By betting on these emerging Bitcoin assets, Magic Eden has found new life after losing relevance with Solana.

Another player contributing positive energy to the space is OKX, which has an on-chain market dedicated to Runes assets.

Now, the next major market speculation is the creation of a decentralized exchange similar to Uniswap or Jupiter. There’s no clear prediction yet whether this will happen, but it’s fair to say that infrastructure is accelerating for an asset type that didn’t exist three months ago.

Others have also accepted this statement

In addition to native players and on-chain development, centralized exchanges are also gradually embracing rune-based assets, led by DOG tokens, which are currently listed on Gate.io and MEX Spot, perpetual coins are listed on Bybit and KuCoin.

Runes 프로토콜이 출시된 지 3개월이 채 되지 않았으며, Runes 토큰을 거래소에 상장하려면 거래소에서 인프라를 업데이트해야 한다는 점을 강조할 가치가 있습니다. 그렇기 때문에 소규모 거래소가 가장 빠르게 움직이고 있으며, 대규모 거래소도 크게 뒤처지지 않을 것입니다.

그렇지만, 무관심한 시장 속에서도 룬 생태계는 매우 흥미로운 발전을 이루며 발전의 정점에 도달하기에는 아직 멀었음을 보여줍니다.

"알트코인 시즌"이 오지 않더라도 Rune 생태계는 강력한 내러티브를 갖고 있으며 시장에서 두각을 나타낼 것입니다.

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