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Friday, June 7, 2024
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Rune reduces BRC-20 activity

The Runes token standard launched around the time of the most recent Bitcoin halving in April and was very popular in the beginning. At its peak, it accounted for more than 80% of transactions on the network and helped push daily Bitcoin transactions and daily transaction fees paid on the network to new highs.

To date, Runes still attract public attention, accounting for about 50% of Bitcoin transactions. However, such high fees have subsided as demand for initial registrations has waned.

Source: The Block

But what effect would that have on the Ordinals and the BRC-20, Runes’s predecessor? Like Runes, BRC-20 is also a token standard for Bitcoin, but it is based on the principles that created Ordinals, attaching metadata to specific satoshis, differentiated by the order in which they were minted. On the other hand, Runes uses unspent transaction outputs as an attempt to have a more transparent approach to new tokens since BRC-20 causes a lot of junk UTXOs.

Essentially, Runes has usurped the BRC-20. Many days before the halving, the BRC-20 token was sought after with more than 200,000 BRC-20 transactions per day. Currently, there are less than 10,000 transactions involving this old token standard amid the rise of Runes.

runes

Source: The Block

Since Runes launched, there have always been at least 150,000 Runes-related transactions on the Bitcoin network. But there’s still a chance that number will drop as we get further away from the big launch.

Non-BRC-20 Ordinals transactions were inherently uncommon before Runes, rarely exceeding 100,000 transactions per day. But in the post-Rune world, Ordinal’s trading volume is down to just 5,000.

It’s not surprising that Runes pushed BRC-20 to the edge thanks to its improvement over the existing standard, but this spells trouble for some of the largest BRC-20 tokens. These tokens faced a price crunch in March when the memecoin rally faded and then again in April as the halving approached and are continuing to decline.

Ordinals is more focused on issuing NFTs on Bitcoin, which despite being the core idea behind BRC-20 probably has a better chance of avoiding the impact of Runes. However, it seems that many people have moved away because the trade is focused on Runes.

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According to The Block

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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