Bitcoin
Insights into its impact on the Bitcoin ecosystem
Andreas Brekken, founder of SideShift.ai, recently shared his insights into the emerging Rune Protocol and its implications for the Bitcoin ecosystem.
Crypto.news received exclusive email commentary on Brekken’s views on Rune Protocol, which has gained enthusiasm and popularity during the recent Bitcoin Halving.
O Rune Protocolwhich utilizes the Bitcoin UTXO model without adding a secondary fee token, offers a simplified approach to token standards that can improve transaction efficiency and reduce costs.
“The Runes standard improves on previous models by adhering to Bitcoin’s UTXO model and not adding a secondary fee token,” he said Brekken. This approach allows for the transfer and minting of low-cost tokens, promoting greater adoption within the Bitcoin community.
Brekken attributed the initial increase in Runas activity to changing investor interests, from NFTs for meme coinsespecially on platforms like Solana (SUN).
According to data from Dune AnalysisRunes still account for the majority or just under half of daily Bitcoin transactions, showing their popularity on the network after the Halving.
Dune Analytics: rune transactions vs other transactions on the Bitcoin network
The introduction of Runes allowed these investors to continue participating in the meme coin trend under Bitcoin (Bitcoin) umbrella. “Investors bought Runes in hopes of continuing to ride the memecoin wave in Bitcoin,” Brekken explained.
Despite its initial success, Runas saw a decline in activity, with a significant drop in the creation of new tokens and interactions with wallets. Brekken believes this is part of the cyclical nature of meme coin trading, which tends to fluctuate between blockchains.
“The Runas community needs to fight for attention. Meme coin traders should be ready to flock to Runes when the next rotation happens. When this rotation arrives, they should be pushing for the first ‘billion dollar meme’ in Runes, similar to successful meme coins such as PEPE, WIFor BONADO,” he stated, suggesting that an aggressive approach could reignite attraction for Runas during the next market rotation.