The emphasis of investors turned to Bitcoin Runes, which are similarly vulnerable to a significant fall, causing a steep decline in BRC-20 tokens.
Days before the halving of Bitcoin, the two biggest BRC-20 tokens suffered drops of more than 40% on the weekly chart.
As this is going on, traders are concentrating on Bitcoin Runes, a new token standard that simplifies the process for users to generate fungible tokens on the platform.
Tokens BRC-20 The two biggest BRC-20 tokens by market capitalization, Ordinals (ORDI) and Sats (SATS), both experienced notable decreases.
According to CoinMarketCap data, ORDI dropped more than 42% and SATS more than 45% during the course of the week.
Sales of BRC-20 tokens have also decreased. According to NFT data aggregator CryptoSlam, WZRD BRC-20 sales dropped 63% to $1.1 million while PUPS BRC-20 sales declined 30% to $1.4 million in the last 24 hours.
However, RUNE BRC-20 token sales volume increased by almost 4,500% per day to $251,000, indicating that traders are now more interested in Bitcoin Runes.
WZRD BRC-20 tokens and PUPS BRC-20 tokens were the third and second-largest collections by sales volume on all blockchains during the previous week.
According to CryptoSlam, PUPS generated over $41 billion in sales volume, while WZRD generated $16.3 million in weekly sales.
Due to its impending introduction, which coincides with the Bitcoin halving later this week, Bitcoin Runes – a novel protocol for producing fungible tokens on the Bitcoin network – have attracted a lot of attention.
The genuine commercial opportunity for Runes might not materialise until months after the initial investment frenzy fades, despite the burgeoning enthusiasm, according to the pseudonymous decentralised finance (DeFi) researcher Ignas, who said in an April 17 X post:
“Runestone, RSIC, and PUPS are already booming with the promise of brand-new Rune token airdrops for holders. And the FOMO threads never stop. But, the market may quickly calm off, similar to the NFT craze following the JPEG revelation.
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The pseudonymous researcher predicts that rune prices will drop sharply following the halving since they don’t instantly enhance the trading experience of BRC-20 tokens and because small traders might be priced out of the rising Bitcoin transaction costs.
Ignas anticipates that hundreds of Runes may be released onto the market, which would reduce trading interest and capital inflows.
In combination with Runes’ initial lack of utility, these features will turn them into something similar to memecoin trade, the researcher who went by pseudo wrote:
“Utility-wise runes will eventually trade like BRC-20s, just like memecoins.” Initially, at least, so the novelty effect will wear off. particularly if degens lose money and no rune token is able to keep the pump running.
But Runes might eventually get more features, which is why Ignas said he was “bullish” about Runes in the long run.
With the next Runes integration, the Internet Computer Protocol (ICP) will be able to provide direct interactions between ICP smart contracts and BRC-20 tokens on the foundation layer of Bitcoin, hence expanding the opportunities available to holders.
The goal of the new paradigm known as Bitcoin DeFi, or BTCFi, which includes ICP’s activities, is to increase the utility of Bitcoin and Bitcoin-native assets.
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