- Runes, the new fungible token standard on Bitcoin, has seen a decline in trading volume and activity since its launch in April.
- Despite the initial hype, many users have been underwhelmed by the trading experience, comparing it to trading NFTs rather than fungible tokens.
- However, some market observers believe that Runes could follow a similar maturation arc to the earlier BRC-20 Bitcoin token standard, which saw a surge in value and trading activity after a quieter period.
Despite initial excitement, the new fungible token standard on Bitcoin, Runes, has seen a decline in trading volume. However, some believe it could follow a similar maturation arc to earlier Bitcoin tokens.
Runes: A New Fungible Token Standard on Bitcoin
Launched in April amid the quadrennial Bitcoin halving event, Runes had the crypto community buzzing. However, less than a month later, the early impact appears less monumental than many Bitcoin backers expected. The Runes launch saw immediate activity, with hundreds of token tickers launched within the halving block, but demand has since decreased.
Decline in Trading Volume and Activity
Data from Sat Screener indicates that six of the top 10 most-traded Runes have experienced a decline in trading volume over the past seven days, ranging from 20% to 57%. In terms of the number of Runes etched, data from Dune shows that etching has dropped significantly since the start of May. On social media, chatter about Runes is divided, with many users feeling more like they’re trading NFTs rather than fungible tokens.
Future of Runes: A Similar Maturation Arc to BRC-20?
Despite the decline, some market observers believe that Runes could follow a similar maturation arc to the earlier BRC-20 Bitcoin token standard. The BRC-20 token standard saw a flurry of initial excitement before a quieter period with less hype and demand, followed by a surge in value and trading activity. Runes were billed as a more “efficient” upgrade to BRC-20, so the initial trading hitches could also be dulling momentum in the short term.
Conclusion
Despite the cooling-off period, Runes remain in their infancy, and supporters claim that it’s far too early to count them out. The technology is still evolving, and as the community becomes more familiar with Runes features and the ecosystem matures, there’s potential for renewed interest and growth. The crypto world is watching closely to see if (or when) that happens with Runes.
