In cryptocurrencies, where most histories are reduced to a single line, the tale of the Runes Protocol – an improved framework for cryptographic operations Create meme coins on Bitcoin– It happens something like this: It started with a bang and faded away, just as quickly, with a whine.
It’s been barely a month since the success of Runes First time Along with the April halving of Bitcoin; However, the protocol’s subsequent failure to meet lofty standards led many to write off the entire endeavor as a mere failure misfire.
But could the growing institutional excitement for runes in East Asia signal a possible second chapter for the emerging protocol?
While the mainstream chatter about runes has died down in the West, the hype surrounding the protocol in Asia has continued to grow — especially among institutional investors and more centralized construction teams who see it as more sophisticated on the subject than the previous protocol. BRC-20 fungible token standard.
BRC-20 tokens, the first wave of Bitcoin memes, created heaps of organic excitement when they swept cryptocurrencies in… 2023generated from a temporary disk Bitcoin Arrangements code. Their debut was very chaotic experimentalAnd decentralization – the perfect storm for success in the crypto world.
By contrast, the Rune Protocol was much more widespread In a systematic way, by a team of reputable engineers focused on security, scalability, and easy-to-navigate building tools. In fact, this came from the original creator of the Ordinals Protocol, Casey Rodarmor, who thought he could create a better replaceable token protocol than the one that leveraged his previous code.
It can be said that this focus did not leave much of an impression on degin traders. But investors in East Asia say this has made a big difference for them.
“Runes is designed to meet the stringent requirements of institutional investors, with a focus on scalability, efficiency and security,” said Ciara Sun, founder and managing partner of Asia-focused cryptocurrency investment firm C Squared Ventures. Decryption. “This alignment may make Runes more attractive to a broader institutional base.”
Some Asian investment firms, such as Hong Kong-based Newman Group, have already jumped into the world of runes. The company says it is actively developing Runes across portfolio companies such as xverse And liquidAs the company sees the potential for Runes to become an essential infrastructure layer for the entire cryptocurrency industry.
“We believe RONES can become even bigger than BRC-20, especially given institutional interests,” said Adrian Lay, founder of Newman Group. Decryption. “The technical advantages of Runes and their potential for efficient cross-chain transactions could make them a preferred choice for institutions looking to access DeFi on Bitcoin.”
Some of the most prominent cryptocurrency companies have already done this Stand in line Behind the protocol. Leading cross-chain NFT marketplace, Magic Eden Launched The Runes platform is dedicated in April. OKX, one of the best centralized cryptocurrency exchanges in Asia, has She eagerly embraced protocol; It was the first exchange to be introduced Without fees Rune trading.
Paige Xu, an investor at OKX, says the runes are almost perfectly designed to check every box on an institutional investor’s wish list. She specifically pointed to the protocol’s Unspent Transaction Output (UTXO) model, which allows tokens to interact more seamlessly with cryptocurrency wallets, layer 2 networks and DeFi applications than BRC-20 tokens or tokens currently do.
“Runes has the right elements — efficiency and a narrow blockchain footprint — that organizations typically look for in technology, which can handle high demand securely,” Xu said. DecryptionShe added that her personal opinions do not necessarily reflect the views of her employer.
However, the investor noted that Runes’ rise to dominance through institutional support is still far from a done deal.
“The adoption of Bitcoin-based technology like this is still very new, and a lot depends on how well we can educate and integrate these assets into the broader financial world,” she said.
In the days following its release on April 19, interest in the runes has soared; After three days, the protocol had seen more than a million transactions, according to on-chain data from Sand dunes. Transaction volume then dropped by up to 90% in the following weeks, amid a broader cooling-off period across the cryptocurrency ecosystem.
However, in late May, activity on the runes more than tripled. For the first time ever, the total market capitalization of assets included in the protocol reached $1 billion, according to the bank GeniiData. This number has been around since then Exceeded $2 billionsuggesting that the runes may be enjoying something of a comeback (despite being barely a month old).
There is no guarantee that institutional excitement around Runes will lead to the protocol taking over the cryptocurrency industry, as many once assumed. But if the current sentiment in East Asia is any indication, the biggest players in the cryptocurrency space are coming to the conclusion that there is only one path to popularizing Bitcoin fungible tokens — and that path is through runes.
“If issuing fungible tokens on the Bitcoin blockchain is the right move, then the choice between Runes and BRC-20 comes down to which has a better chance of long-term viability and diversification.” MixWeb3founder by pseudonym China runes Community, he said Decryption. “This makes the choice clearer.”
Edited by Andrew Hayward