runes, a new alternative token standard for Bitcoin, excited enthusiasts when it was launched in April during the quadrennial Bitcoin halving event. However, less than a month later, the initial impact appears to have been less significant than many Bitcoin supporters expected.
Rune's launch certainly saw some immediate activity, with hundreds of token tickers launched within the halving block. However, demand has declined in part due to expectations and amid a cooling crypto market that has seen widespread price declines in recent weeks.
data from sat screener shows that 6 of the top 10 most traded runes have seen a decrease in trading volume ranging from 20% to 57% over the past 7 days. In terms of the number of runes carved, Data from Dune Etchings have decreased significantly since the beginning of May, going from a few thousand per day in late April to just a few hundred per day in recent days.
On social media, the topic of runes is divided. Many expected this trading experience to be more similar to trading established tokens like Ethereum's ERC-20 standard, rather than blocks of tokens pre-divided by users. This makes it feel like you're trading NFTs rather than alternative tokens, and the technology's early state creates new hurdles for early traders.
However, a small but vocal group of users continues to actively trade loons despite the decline, with some admitting that their enthusiasm has waned since the Bitcoin halving.
So what does the future hold for Rune? Market observers were quick to point out similarities between Rune and Ordinals like NFTs (both created by Bitcoin developer Casey Rodalmore). , highlighting a similar pattern of initial hype followed by a gradual decline in activity.
Some believe that loons may follow a similar maturation curve. His previous BRC-20 Bitcoin token standard similarly had an initial wave of excitement, followed by a quiet period with less hype and demand, followed by a surge in value and trading activity. However, the initial deal holdup could also slow momentum in the short term, as Rune was touted as a more “efficient” upgrade to the BRC-20.
“Users coming to Bitcoin for the first time may have been overwhelmed by how dissimilar the experience was to BRC-20 and far from the progress many have been touting on their timelines over the past few months. ” farmer joe 0xpseudonymous founder of puppy tokenSaid Decryption.
“Having said that, some opportunities seem to be forming, such as a bridge from Rune to Bitcoin’s Layer 2.” [networks], Solana as well,” they added. “Demand for Bitcoin tokens has proven to be strong on centralized exchanges, and once most cryptocurrency users can access the tokens with the trading experience they desire, other chains will likely see interest in these tokens as well. I would guess we're going to see a lot of trading.”
Choi Yoon SeopMagic Eden Senior Business Development Manager, Shared Decryption He has observed a decline, but said it was expected. Magic Eden has emerged early as one of the most prominent rune traders, and he is betting on its future. Choi continues to believe that the Bitcoin fungibility market has significant upside potential.
“The Rune Trading UI will continue to improve, protocol upgrades are possible, and marketplaces like Magic Eden are investing in UI/UX improvements every day,” he said. “Although the UI/UX may never catch up with SOL or EVM’s layer 2 meme coin trading, the transparency and immutability aspects of Rune could be another way Rune finds there is. [their] place. “
Choi added that meme coin launches are often plagued by insider issues within the team, including sniping, distribution to multiple wallets, and opacity regarding the use of funds. The Runes protocol addresses many of these issues.
“Rune offers full transparency in its creation, including details of pre-mining proportions and casting standards,” Choi explained.
Despite this cooling-off period, runes are still in their infancy, and proponents argue that it is too early to count them. The technology is still evolving and may see renewed interest and growth as the community becomes familiar with Runes' capabilities and the ecosystem matures.
Also, rune trading It still dominates Bitcoin these days.Even if some of the hype has diminished. Previous Bitcoin innovations, such as Ordinals and his BRC-20 token, took time to find broader trading interest and significant demand, but both ultimately achieved significant market suitability. has been secured. TThe crypto world will be watching closely to see if (or when) that happens with Rune.
Edited by Andrew Hayward
