Andreas Brekken, founder of SideShift.ai, recently shared his thoughts on the emerging Runes Protocol and its implications for the bitcoin ecosystem.
crypto.news received exclusive email feedback on Brekken's views on the Runes Protocol, which gained buzz and popularity during the recent bitcoin halving.
The Runes Protocol, which uses the bitcoin UTXO model without adding a secondary fee token, offers a simplified approach to token standards that could improve transaction efficiency and reduce costs.
“The Runes standard improves on previous models by sticking to bitcoin's UTXO model and not adding a secondary fee token,” he said Break. This approach allows for low-cost transfer and minting of tokens, encouraging greater adoption within the bitcoin community.
Brekken attributed the initial surge in Runes activity to investors' shifting interests from nfts to meme coins, particularly on platforms like Solana (SOL).
According to data from Dune analysisRunes still account for the majority or just under half of daily bitcoin transactions, demonstrating their popularity on the network post-Halving.
<img loading="lazy" decoding="async" width="1024" height="441" src="https://crypto.news/app/uploads/2024/05/Runes-vs-Other-TX-on-bitcoin-1024×441.png” alt=”Exploring the Runes protocol: insights into its impact on the bitcoin ecosystem – 1″/>
The introduction of Runes allowed these investors to continue participating in the meme coin trend under the bitcoin (btc) umbrella. “Investors bought Runes in hopes of continuing to ride the wave of memecoins into bitcoin,” Brekken explained.
Despite its initial success, Runes has seen a decline in activity, with a significant drop in new token creation and wallet interactions. Brekken believes this is part of the cyclical nature of meme coin trading, which tends to fluctuate between blockchains.
“The Runes community needs to fight for attention. Meme coin traders should be prepared to flock to Runes when the next rotation occurs. “When that rotation comes, they should be pushing to create the first ‘billion dollar meme’ on Runes, similar to successful meme coins like PEPE, WIF or BONK,” he said, suggesting that an aggressive approach could reignite attraction on Runes. during the next market rotation.
