Bitcoin Runes is the latest addition to the Bitcoin ecosystem, which has grown with fungible and non-fungible tokens in the last two years. These tokens have already reached a $2 billion market cap, generating profits for the BTC miners.
Runes is a standard protocol where a user can create fungible tokens on the Bitcoin ecosystem in a flexible, easier, and efficient way. Moreover, it will also manage fungible tokens, improve Bitcoin efficiency, and broaden the utility of the Bitcoin network to attract a broader audience by simplifying the creation of meme coins and other community-driven projects on the blockchain.
However, the investors are curious about what it will bring to the table in the future.
Inauguration of BTC Runes on Magic Eden
Magic Eden is a pioneer NFT-focused marketplace that allows users to create, sell, and trade NFTs. On Monday, April 22, the platform announced via their X tweet that “Runes are LIVE in Magic Eden Wallet.”
The product was initially released on Tuesday. The release states that users can swap the amount of BTC to buy Runes and Ordinals using their Magic Eden wallet on the platform. As per a statement from Magic Eden, the platform will also feature a Swaps View, enabling users to specify the amount of BTC they wish to spend when purchasing Runes.
Magic Eden co-founder COO Zed said, “As early supporters and first to build an Ordinals marketplace, it was important for us that we build the best Runes experience possible in this important evolutionary step for Bitcoin.”
The Bitcoin Ordinals can also be replicated as NFTs, where metadata like text and images are embedded into the smallest form of BTC, satoshis.
Runes Launch on 4th Bitcoin Halving
The Runes was launched on the 4th halving of Bitcoin with 840,000 blocks and currently has one of the largest market marketplaces (RSIC-Genesis-RUNE) above $325 million.
Furthermore, Casey Rodarmor announced the development of Runes in September 2023 and has been working on them since then.
He said, “Creating a good fungible token protocol for Bitcoin might bring significant transaction fee revenue, developer mindshare, and users to Bitcoin.”
Runes are tokens created in the Bitcoin ecosystem. It utilizes Bitcoin UTXO and OP_Return opcode to facilitate the proper creation and management of tokens. Unlike the Ethereum or Solana blockchain, the Bitcoin ecosystem does not support the creation of fungible tokens.
Franklin Templeton states, “Currently, the fungible token market for Bitcoin is quite small in comparison to ETH and SOL; however, with the launch of more efficient token standard (Runes), Bitcoin is positioned well to close the gap between its fungible market cap versus that of other blockchains.”
Runes protocol is dependent on Bitcoin, just like BRC-20 and SRC-20 tokens. However, this will simplify the process of creating fungible tokens on Bitcoin and not depend on ordinals.
Benefits of Runes
The launch of Runes on the Bitcoin ecosystem has sparked cryptocurrency individuals, especially among memecoin and fungible tokens enthusiasts. Runes will provide more simplicity and flexibility as the user can create multiple tokens at once without facing any obstacles. It also provides an affordable way to create a token, unlike BRC-20, which is much more expensive due to its operational costs.
Moreover, according to the protocol’s creator, the main purpose of Bitcoin Runes is for “fun and meme coins.” Thus, expanding the user base will engage investors in this protocol. The protocol has already attracted large communities of memecoins.
Final Verdict
Runes protocol is an innovative edition of the Bitcoin ecosystem as it will boost the creation of fungible tokens and meme coins, sparking the interest of large communities in cryptocurrency. Moreover, it provides a simple and easy way to create tokens without having to pay high fees like BRC-20. The creator and the developers are optimistic about this protocol.
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