- The emerging market of Bitcoin-based meme coins showed signs of life Thursday, as the price of several so-called Runes tokens increased—all while the value of memetic assets on other networks fell.
- The market capitalization of meme coins tracked by CoinGecko had fallen 4.6% over the past day to $66 billion, yet Bitcoin Runes token DOG•GO•TO•THE•MOON (aka DOG) has increased 20% to $0.007, as of this writing.
- DOG is now up 85% over the last week alone, setting a new all-time high price of $0.007542 late Wednesday. It now has a market cap of nearly $730 million.
Bitcoin-based meme coins are making waves, with DOG token leading the charge amid a broader decline in the meme coin market.
Bitcoin Runes Tokens Surge Amid Market Decline
The Bitcoin-based meme coin market has seen a significant uptick, particularly with the DOG token, which has surged 20% to $0.007. This comes at a time when the overall market capitalization of meme coins has dropped by 4.6% to $66 billion. DOG has shown remarkable growth, increasing 85% over the past week and achieving a new all-time high price of $0.007542. The token now boasts a market cap of nearly $730 million.
The Role of Bitcoin Runes in Meme Coin Popularity
Bitcoin Runes, a protocol developed by Casey Rodarmor, has been instrumental in the rise of these meme coins. Rodarmor, who previously popularized NFT-like assets on Bitcoin through his Ordinals protocol, describes Runes as a “venue for people to create shitcoins.” Since its debut in April, coinciding with Bitcoin’s fourth halving event, Runes have garnered significant attention. However, the narrative momentum for Runes and BRC-20 tokens has been relatively slow, according to Blockspace Media co-founder Charlie Spears.
Technical Challenges and User Experience
The popularity of meme coins on Ethereum and Solana, compared to those based on Bitcoin, highlights a technical gap and a lackluster user experience. Meme coins have been around for years on other networks, but on Bitcoin, the technology is still in its infancy. Spears notes that users are more interested in trading these tokens quickly and with high liquidity, rather than understanding the underlying technology.
Trading Volume and Market Dynamics
Despite the price surge, the trading volume for Runes remains small compared to other meme coins. DOG has recorded $97 million in trading volume over the past day, while Ethereum-based Pepecoin has seen $1.5 billion in the same period. Created by the pseudonymous Twitter influencer Leonidas, DOG was airdropped to holders of assets from Leonidas’ Runestone Ordinals project. On Thursday, Leonidas highlighted DOG’s performance amid a broader market decline for other meme coins.
The Broader Meme Coin Landscape
Dog-themed tokens like Floki, Bonk, and Dogwifhat have proliferated in the wake of Dogecoin’s popularity, which was significantly boosted by Tesla CEO Elon Musk in 2021. Among these, DOG has posted the highest weekly gains, with a 73% increase. However, tokens inspired by Former President Donald Trump have seen even greater increases, reflecting the shifting political landscape around crypto in the U.S.
Decentralized vs. Centralized Exchanges
Decentralized exchanges, where anyone can list a token, are crucial for trading many meme coins, which often lack utility or detailed information. Currently, Runes primarily trade on centralized exchanges like OKX or marketplaces like Magic Eden. Over the past 30 days, the total sales volume of Bitcoin-based collectibles, including BRC-20s, Ordinals inscriptions, and Runes, has dropped 70% to $180 million, according to CryptoSlam data. However, as more robust trading solutions for Runes are developed, there is potential for a resurgence in their market.
Conclusion
The recent surge in Bitcoin-based meme coins, particularly DOG, highlights the evolving landscape of the crypto market. While technical challenges and user experience issues persist, the growing interest and trading volume suggest a promising future. As the market continues to develop, the performance of tokens like DOG could redefine the narrative around Bitcoin-based meme coins.
