Meme excitement: Bitcoin’s Runes protocol gains 200% within a month
The market valuation of Bitcoin's Runes protocol is getting close to $1 billion after increasing 200% in the last month.
The surge in meme-coin activity that has seen companies like SHIB, PEPE, and FLOKI add billions of dollars to their market valuations contributed to the ascent of the Runes protocol(DOG). The market valuation of Bitcoin’s Runes protocol is getting close to $1 billion after increasing 200% in the last month. The Bitcoin Runes protocol is a fungible token standard on the platform. These fungible tokens can be used and maintained on the Bitcoin network are made simpler by a new token standard known as Runes Protocol
Like Ordinals, BRC-20 tokens function by inserting data into each satoshi (sat), the smallest unit of Bitcoin. This implies that as information moves around the Bitcoin network, it becomes inextricably linked to Sat once it is tied to it.
In contrast, Runes uses the Unspent Transaction Output (UTXO) architecture in Bitcoin. Taking advantage of Bitcoin’s current infrastructure is essential as it reduces the quantity of new data that needs to be kept on the blockchain.
On April 20, during the Bitcoin halving event, the token came into existence. It was dubbed “Rune Number 3” and grew to be the biggest meme coin on Bitcoin as the ninth biggest meme coin overall in the cryptocurrency market. The biggest, dogecoin (DOGE), is valued at $23.6 billion.
Despite the slow speed of the Bitcoin blockchain, DOG is contributing to Rune’s creation as a legitimate layer-2 network. A recent report by cryptocurrency exchange Bybit indicates that meme coins are becoming an important part of cryptocurrency portfolios; institutional holdings of meme coins increased by 226% between February and March, while retail holdings increased by 478% between February and April. However, when market sentiment soured, they “aggressively sold off” their meme coins.
The research also notes that dogecoin (DOGE) remains the top option for both institutional and retail investors, based on a snapshot of user holdings taken on May 1. Retail investors devote 24.58% of their meme coin holdings to DOGE, compared to 36.17% for institutions. Retail investors have 20.95% of PEPE and 14.61% of SHIB, while institutions hold 22.23% of PEPE and 10.39% of SHIB. These two categories also prefer Ethereum-based meme currencies.
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