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Author: LUGUI TILLLIR Source: Cointelegraph Translation: Shan Ouba, Bit Chain Vision Realm
The tokens on the rune agreement have fallen from the peak, but do not rush to conclude.The agreement has just begun.
The 840,000 blocks mined on April 19, 2024 are of great significance to Bitcoin (BTC).This not only marks the fourth halves of the world’s largest blockchain, but also the launch of the rune agreement.At present, the agreement is the most popular agreement for Bitcoin to create homogeneous tokens.
Although it is common to create tokens on blockchains such as Eta (ETH) or Solana (SOL), this approach is relatively new to Bitcoin, and it has not become popular until 2023.The tokens on the rune agreement were launched in April this year.
In the past 15 years, traditional media have repeatedly claimed that Bitcoin has been “dead.”Similarly, the tokens created on the rune agreement have been regarded as “death” by some critics.Observing the daily transaction volume of these assets and the number of new entrants may make people feel that the runes have indeed reached their peak.However, considering the premature judgment on the end of Web3 assets, this judgment is worth questioning.
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The first thing to consider is the macro background.Since the launch of the rune agreement, Bitcoin has fluctuated between about 60,000 to 70,000 US dollars.During this period, Bitcoin’s dominance of other crypto market assets (that is, cottage coins) almost remained unchanged, showing that the market was cautious when taking more risks.
This directly affects the interest in Rune Standard tokens.Although they exist within Bitcoin, they are classified as “alcohol currency” and have not received widespread market attention.
However, as the Roman Emperor and Stoode philosopher Marco Ole said, “Focus on what you can control, not what you cannot control.” Analysis of the development of rune ecosystems is crucial.
Quality of Rune tokens
So far, almost all tokens created in the rune agreement are coins.In addition to becoming one of the main narratives in 2024, they are also easy to create.Therefore, it is expected that the Bitcoin blockchain will initially be submerged by the factors, rather than a strong token economics or token related to large applications, because the market has no time to create these things.
Among all created coins, the most striking is the DOG token.The success of DOG tokens is attributed to fair startup and a powerful and simple narrative: Bitcoin’s dog coins.Over the years, dog coins have dominated in the factors of all networks, and now Bitcoin also has its own dog coins.
At present, the DOG token accounts for about 40%of the total market value of the rune token market, worth about $ 600 million, and has more than 70,000 holders.Its dominant position highlights the growth potential in this field.
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Evolution of infrastructure
Since the issuance of assets in Bitcoin in 2023, the infrastructure participating in these assets has been remarkable.Except that wallets that support these assets are not popular in Ethereum or Solana ecosystems, Bitcoin lack smart contracts -this makes it difficult to create decentralized exchanges (DEX) and markets.For example, compared with the assets on other networks, the experience of trading Bitcoin assets is much worse.
Some main participants regard this as a good challenge and opportunity.By betting on these emerging Bitcoin assets, Magic Eden has rejuvenated after losing the correlation with Solana.Another participant dedicated to this field is OKX, which has a chain market for rune assets.
The next main guess of the market is to create a decentralized exchange similar to Uniswap or Jupiter.Although there is no clear prediction, it can be said that infrastructure is developing at a fast speed as an asset type that does not exist three months ago.
Others also accepted this statement
In addition to the development of local players and chain, the centralized exchange has gradually accepted rune standard assets.The leading listing is the DOG tokens. It has been launched in Gate.io and MEX, and has been listed on a sustainable contract in Bybit and Kucoin.
It should be emphasized that the rune agreement is less than three months and the rune token listed on the exchange needs to update its infrastructure on the exchange.This is why small exchanges have the fastest operation -large exchanges will follow up.
In summary, even in a cold market, the rune ecosystem has made extremely interesting progress, showing that it is far from the peak of development.
Even if the “cottage season” never arrives, the rune ecosystem has a powerful narrative -it will stand out in the market.
