Given Bitcoin's role in the cryptocurrency landscape, standing for more than 50 percent of all on-chain value, it doesn't come as a surprise that whenever something happens to it, the ripple effect is so fast that it's barely noticeable. Binance data shows that, up until now, halvings have propelled the cryptocurrency market to new heights, but one swallow, they say, doesn't make a summer. The impact of the four-year event has been slowly but surely decreasing, so prices may not surge this time around, and while investing in BTC is still a good idea, investors must be cautious of the craze.
Runes is the surprise winner of this year's halving, anticipated with excitement by a great number of Bitcoin players, many of whom are tired of setting up personal nodes to create fungible tokens, which is as complicated as using BitTorrent. The new protocol allows traders to create and swap meme coins on the Bitcoin blockchain, some of which have gained popularity as a result of their community-driven nature and their humorous streak, often a response to the complex and sometimes mysterious world of cryptocurrency. Runes is an alternative to Ordinals and the BRC-20 protocol, and if successful, it could mess up the NFT market on the Ethereum network.
Invented by the Mind That Created Bitcoin Ordinals, Runes Is a Groundbreaking Evolution
One of the most dramatically impactful protocols in Bitcoin's history was concocted by Casey Rodarmor, whose Ordinals Theory makes it possible to inscribe a number to each Satoshi on the blockchain, which then becomes a transferrable NFT. In case you didn't already know, Rodarmor is a long-time Bitcoiner who's always on the lookout for promising opportunities and frequently writes code commits for the Bitcoin Core that validates transactions, keeps a copy of the blockchain, and relays transactions to other nodes. The Bitcoin artist proposed Runes as a more efficient and user-friendly way of creating NFTs.
Runes is very simple: it uses OP_RETURN in every transaction, and the balance is tied to a UTXO. A special message is used to issue a token, allocating all the balance in the issuance transaction, and that's about it. Runes and BRC-20s have their strengths and weaknesses, but Runes is the ultimate winner because it reduces the occurrence of unwanted junk that can congest the network, leading to slower, more expensive, and less dependable transactions. The fungible token protocol has a small on-chain footprint and upholds Bitcoin's auditability and transparency, eliminating the double-spending issue, a fundamental problem for digital assets.
The Listing of Runes on Crypto Exchanges Has Triggered a Surge of Excitement
Centralized cryptocurrency exchanges are already listing Runes tokens to take advantage of the demand among investors and traders following the introduction of the Bitcoin-based on-chain innovation. Excitement isn't the only thing that can attract more users. Unlike Ordinals and other NFT collections, the value of Runes isn't derived from limited supply, meaning that you can create a truly absurd number of tokens, so it's easier for people to join the community of investors. Select a Runes project to trade only after having examined its trading volume, price history, fee structure, and supporters.
The rush to mint tokens on Bitcoin as the Runes protocol launched led to sky-high transaction fees, and miners received an overwhelming amount of revenue, even if the halving had their income cut in half, reducing the rewards earned to 3.125 BTC. Getting into the first block and securing one of the early spots lends a Runes project distinguished provenance and makes it more appealing to traders and investors, showing that Bitcoin is much more than just boring digital gold. CEXs are eager to add Runes to their listings, adapting their business methods to suit the unique characteristics of the cryptocurrency community.
On social media, speculation can run wild. That being said, it's believed that the first Runes tokens, some of which haven't even been used yet, will be listed on major exchanges, with Gate.io leading the way, playing an important role in legitimizing the digital assets and bridging the gap between mainstream and decentralized cryptocurrency communities. WANKOâ—MANKOâ—RUNES is of particular interest, having gained a lot of buzz for being inspired by a story by Casey Rodarmor. Besides new projects, some BRC-20 meme coins, like PUPS, are expected to move to the new protocol.
Runes Is Poised Either for Widespread Adoption or Major Restructuring
It's too early to judge just how much of a success or failure Runes will ultimately be, even though the first days of the protocol have been marked by an enthusiastic uptake and high transaction fees. The new token standard has quickly become a dominant force in the cryptocurrency market, but it's faced some backlash, with many arguing that Bitcoin is moving away from its original purpose, released to be a peer-to-peer payment method. There's also uncertainty about whether Runes will generate sustainable revenue for miners—the bidding mechanisms are the biggest issue. Failed bids still get mined, and fees are paid, to say nothing of the fact that they spam the blockchain.
The success of NFTs on the Ethereum blockchain suggests that Runes has a bright future ahead, but the protocol still has a lot to prove, so it's too soon to say if it's better or worse (or complementary). Setting up a wallet isn't difficult—understanding the DeFi space and moving NFTs in and out of your wallet is complicated—so you really have to do your homework before jumping in. Keep a close eye on the cryptocurrency space in the next weeks or so to see just how many Runes projects have been launched and how the prices of early meme coins have performed.
Conclusion
When Runes tokens launched, they accounted for roughly 60 percent of transactions completed on the Bitcoin network. Cryptocurrency exchanges are rubbing their hands, and curious traders and investors want to see what all the fuss is about, rushing to create meme coins. Runes supports minting, etching, and transferring, offering a new way to do things.