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FluidTokens presents the first DEX for Rune, connecting Bitcoin and Cardano
FluidTokens, a Swiss company specializing in decentralized finance (DeFi), has launched a revolutionary decentralized exchange (DEX) dedicated to Runes. This platform stands out for its operation on both the Bitcoin and Cardano blockchains, offering users an innovative approach to interacting with meme coins via DeFi services. The new DEX is designed to facilitate trading and liquidity of Runes, a digital asset that is gaining popularity within the crypto community.
Runic Protocol: A New Era for Meme Coins
The Runes protocol, created by Casey Rodarmor, the developer behind the popular Ordinals protocol on Bitcoin, was introduced on April 20. This date coincided with the Bitcoin halving event, historically associated with the increase in value of Bitcoin and mining activity. The launch of the Runes protocol led to a significant surge in the cryptocurrency market, resulting in higher transaction fees and substantial profits for Bitcoin miners, who earned over $107 million in the first week alone.
Features and benefits of FluidTokens DEX
FluidTokens’ new DEX provides an easy-to-use alternative to other Bitcoin-based protocols such as BRC-20. By integrating this protocol into their decentralized exchange, FluidTokens aims to simplify the trading of meme coins, improving efficiency and ease for users. This initiative leverages the security and transparency of the Bitcoin blockchain, offering a seamless trading experience. The company’s goal is to bridge the gap between traditional finance and DeFi by supporting Runes and integrating seamlessly with major Bitcoin wallets.
The vision and future developments of FluidTokens
Matteo Coppola, CEO and co-founder of FluidTokens, expressed satisfaction with the launch of the first completely permissionless lending protocol supporting Runes and Ordinals, compatible with all major BTC wallets. He highlighted the innovative BitWeave technology that allows the lending protocol to operate independently without a centralized entity or second layer. Coppola also indicated that additional DeFi services are in development, which will work directly on the Bitcoin Layer.
Market reactions and business trends
Prior to the Bitcoin halving, there was substantial anticipation surrounding the Runes protocol, with predictions of significant progress. During the halving at block 840,000, transfer fees increased to over $240, reflecting high activity on the network. The peak of Rune minting and transactions occurred on April 26, with thousands of engravings in just four days. However, activity dropped significantly afterward, with only 86,047 incisions recorded on April 30, compared to just 6,122 over the next 18 days.
Fluctuating assets and fees
Rune creation volume varied significantly, with the lowest on May 12 (120 runes) and the highest on May 3 (1,203 runes). By May 17 activity had declined further, with only 143 etchings. As a result, the costs for producing runes have also decreased. Bitcoin miners have so far racked up $4.7 million in commissions from Runes, earned mostly during the active period from April 19th to April 30th.
Decrease in interest in ordinal enrollments
Data from Dune Analytics showed a sharp slowdown in ordinal enrollments since April 20, with daily enrollments falling below 35,000. Despite the initial enthusiasm for Runes and Ordinals inscriptions, interest appears to have waned, particularly in the month following the Bitcoin halving and launch of the Runes protocol.
Conclusion
FluidTokens’ launch of the first Runes-dedicated DEX marks a significant development in the DeFi landscape, connecting the Bitcoin and Cardano blockchains. Despite the initial excitement and activity around the Rune Protocol, recent trends indicate a decline in interest. However, FluidTokens’ innovative features and strategic goals suggest a promising future for this new platform as it continues to evolve and integrate additional DeFi services directly onto the Bitcoin Layer.