Memecoins
Memecoins on Bitcoin are about to get supercharged. Here’s how to do it – DL News
- The Runes upgrade is expected to go live alongside the Bitcoin halving.
- Runes will bring more efficiency and capabilities to tokens built on the original blockchain network.
- Already, traders are flocking to Bitcoin projects ahead of their launch.
Crypto’s proverbial digital rock is getting a major upgrade intended to significantly boost the use of memecoins on the Bitcoin network.
And as Bitcoin heads toward its fourth halving, this upgrade is scheduled for the same time.
Called Runes, it is expected to formalize how inscriptions – essentially Bitcoin NFTs – and tokens are exchanged and minted.
Launching and speculating on a memecoin or NFT on Bitcoin is currently quite a tricky experience for developers and investors.
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Still, that hasn’t stopped users.
Ordinals Inscriptions, the first real experiment to make Bitcoin a token launchpad, has already generated more than $415 million in transaction fees since 2022.
Casey Rodarmor, the creator of Ordinals, hopes to tap into this new demand and increase it with Runes.
But what is the Runes protocol and how does it work?
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Bitcoin tokens, but faster
At the heart of the Runes is the use of Bitcoin UTXO – Unspent transaction results – template.
In this model, each transaction begins by identifying fragments of Bitcoin that have not been spent – much like collecting digital currency – and uses them to create new transactions.
Runes store data in the OP_RETURN field in Bitcoin transactions. Imagine scribbling a note on a physical bank note to identify it later; OP_RETURN serves a similar purpose but in digital form.
This method of data storage does not modify the transaction value but allows the addition of metadata transactions without cluttering the network with unnecessary data.
This maintains network efficiency, thereby reducing latency and transaction costs, which is particularly beneficial for a network like Bitcoin.
These changes are a major improvement, as stated by Brian Rudick, senior strategist at crypto market maker GSR. DL News.
“Personally, I think there is a real possibility that Runes will become the de facto fungible token standard on Bitcoin because it is UTXO-based, keeps all transactional data on-chain, and has a smaller on-chain footprint.”
The most important takeaway from the upgrade is that it gives Bitcoin much more utility.
Considered a digital gold intended for HODLing rather than spending or launching memecoins, Bitcoin with Runes is much more like layer 1 blockchains that allow users to trade tokens.
Preparation for the runes
At the start of the upgrade, the demand for Bitcoin NFT is already high.
According to nftpulse dataan NFT review site, Bitcoin NFTs have dominated all blockchains in terms of trading volume and active traders over the past 30 days.
Runestone is one such project, starting with an airdrop to over 112,000 users holding at least three non-textual ordinals in their Bitcoin wallet. The value of the drop was estimated at some $300 million, of which more than $215 million in volume on NFT marketplaces.
Following the Runes upgrade, Runestone holders are expected to receive airdrops from three different Runes memecoin projects.
The first parachute drop, named DOGis expected to drop later this month, while the other two memecoins are expected to be dumped. Later in the year.
On the other hand, existing BRC-20 projects – the current standard for tokens built on Bitcoin – are faced with a decision: stick with BRC-20 or move to the Runes standard. Many have already announced their intention to adopt the new standard.
PUPS, a memecoin dropped on Bitcoin Puppet holders and OPIUM the holders, have already signaled that they will switch to Runes.
PUPPIES is the third largest BRC-20, up over 1,226% in the last 30 days and with a market cap of $462 million.
WZRDanother memecoin that signaled it would move to the new Runes standard, is up 257% over the past seven days.
Ryan Celaj is a data correspondent at DL News. Do you have any advice? Send him an email to ryan@dlnews.com.