Rune protocol has been launched, and the follow-up market bullish still depends on fall?

Author: Ignas

Compilation: Deep Tide TechFlow

The Rune protocol was launched on April 20th, and long people on the market are fear of missing out (FOMO).

But now there are several reasons to continue the falls

First of all, the Pre-rune Token market was hot before Rune was launched

Runestone, RSIC and PUPS have already gone through a big pump, promising airdrops of new runes that holders will receive.

The market was quite fomo before the rune was launched, but, like the NFT madness after the JPEG release, the market will soon cool down. Here’s why

• With Bitcoin Money Laundering soaring, retail traders may get bogged down and lose confidence
• Runes may not initially revolutionize the trading experience for BRC20, as UTXOs and BRC20 trade similarly to NFTs
• For example, Unisat and Ordinal Wallet have the same rune user interface as BRC20

In addition, dozens, if not hundreds, of rune Tokens will enter the market

This dilutes:

• Trader’s attention
• Inflow of funds per Token

And Rune 0(UNCOMMON· Created by Casey Rodamor, the GOODS) series is also not easy to big pump, it is free to minting for 4 years, with a minting limit of 1 per transaction.

Finally, utility runes will be traded as memes like BRC20

At least at first, the excitement of the “new” fades away. Especially if there are no rune tokens that can sustain the pump, and the degens lose money.

Long-term bullish runes

Of course, some runes will do well, and you’ll see success stories, and if I’m right, the real chance is after the hype cools down after the rune protocol release.

I’ve been bullish on runes for a long time.

Note that the narrative speculation comes in waves:

First Wave: Fueled by shiny new things and hype, often from technological innovation or memetic potential.

Recent examples: Friend tech, ERC 404, telegram bots.

Meme Token feel like a gamble, and the big long of the one-hit winners will quickly disappear.

But narratives rooted in technological advancements have a better chance after the hype.

Ordinals debuted in December 2022.

But the launch of BRC 20 in May 2023 sparked the first wave. While the initial hype waned, continued development led to the second and third waves at the end of 2023.

The fourth wave is runes.

The runes are here to stay, not just this wave of frenzy. Why?

Rune’s goal is to unify the BTCFi industry with a single standard similar to Ethereum’s ERC20.

Before Rune, the developers’ attention was divided between BRC 20, CBRC-20, ARC 20, etc.

Runes are paving the way for long protocol and infrastructure for Rune Token, like Saturn is building a DEX for Rune or Liquidium is building a lending marketplace, but it will take time to refine the user experience.

Finally, there’s a more basic reason why I’m bullish on Runes and BTCFi for a long time:

In every Bull Market, new technologies emerge.

Bitcoin is considered “not suitable” for NFTs or tokens. However, Bitcoin NFT outperformed Ethereum NFT.

This Ordinals innovation gives Bitcoin the extraordinary privilege of creating new tokens out of shorts and giving them crazy valuations.

This was reserved for smart contracts Blockchain like Ethereum/Solana.

Until Ordinals inadvertently contributed to BRC20, now Runes.

In the end, BTCFi’s narrative potential is nothing short of spectacular!

Storytelling breathes life into technological innovation, transforming it into something that people can relate to and engage with.

Bitcoin’s Ordinals is a very sexy story as the safest and most immutable NFT on the Decentralization Blockchain. This has the potential to lead to a wave of memes on Bitcoin, crazier than Solana or Ethereum!

With developers flocking to Bitcoin and more long BTC degens on board, the future looks promising.

The good news is that we’re really early: everyone is playing catch-up with technology and stories.