Bitcoin Rune Revival? Why Asian Institutional Investors Can Drive Growth

In the cryptocurrency world, where most of the history is reduced to a single line, the story of the Runes protocol is an optimized framework. Create Meme Coins In ~ Bitcoin—It goes like this: It started with a roar and quickly disappeared with a whimper.

Less than a month has passed since Runes’ blockbuster. debut With the Bitcoin halving in April; Nonetheless, the failure of the protocol to meet high benchmarks has led many to dismiss the entire effort. misfire.

But could the growing institutional interest in runes in East Asia signal a possible second act for the new protocol?

While mainstream chatter surrounding Runes has quieted down in the West, rumors in Asia surrounding the protocol have continued to snowball. Particularly among institutional investors and centralized deployment teams, this is seen as a more sophisticated riff on the theme than previous versions. BRC-20 Fungible Token Standard.

The first wave of Bitcoin meme coins, the BRC-20 token, took the cryptocurrency by storm, generating organic excitement. 2023Born from a makeshift arrangement bitcoin ordinal password. Their debut was confusing. experimentalDecentralization – the perfect storm for success in cryptocurrency.

In contrast, the Runes protocol has been released much more widely. systematically, put together by a team of reputable engineers focused on security, scalability, and easy-to-navigate deployment tools. In fact, it comes from Casey Rodarmor, the original creator of the Ordinals protocol. He believed he could create a better fungible token protocol than what his previous code was based on.

This emphasis may not yet have made much of an impression on Degen traders. But investors in East Asia say this has already made a big difference for them.

“Runes is structured to potentially meet the stringent requirements of institutional investors, with an emphasis on scalability, efficiency and security,” said Ciara Sun, founder and managing partner of Asia-focused cryptocurrency investment firm C Squared Ventures. . decryption. “These adjustments may make Loon more attractive to a broader institutional base.”

Some Asian investment firms, such as Hong Kong-based Newman Group, have already jumped into Runes. The company says it is actively pursuing Loon development through its portfolio companies: Xverse and liquidiumThis is what the company considers Runes’ potential to become the fundamental infrastructure layer for the entire crypto industry.

“We believe Runes can be bigger than BRC-20, especially given the institutional interest,” said Adrian Lai, founder of Newman Group. decryption. “Lunes’ technical advantages and efficient cross-chain transaction potential could make it the preferred choice for institutions looking to access DeFi on Bitcoin.”

Some of the most famous companies in cryptocurrency have already line up Behind the protocol. Magic Eden, the leading cross-chain NFT marketplace Released A dedicated Rune platform will be launched in April. OKX, one of Asia’s leading centralized cryptocurrency exchanges, hug hard protocol; It was the first exchange to be offered. No fees Rune trading.

OKX investor Paige Xu says Runes is almost perfectly designed to check off every item on an institutional investor’s wish list. She specifically noted the protocol’s Unspent Transaction Output (UTXO) model, which allows the token to interact with crypto wallets, layer 2 networks, and DeFi apps much more seamlessly than current BRC-20 tokens or Ordinals inscriptions.

“Runes has the right elements of efficiency and a thin blockchain footprint that institutions are typically looking for in the technology space, allowing it to safely handle high demand,” Xu said. decryptionShe added that her personal views do not necessarily reflect those of her employer.

But investors noted that Runes’ seizure of control with institutional backing was far from a done deal.

“The adoption of Bitcoin-based technologies like this is still very new, and a lot will depend on how well we can educate and integrate these assets into the wider financial world,” she said.

In the days following its release on April 19th, interest in Rune surged. In just three days, the protocol recorded over a million transactions, according to on-chain data from . sand dune. Trading volume plummeted as much as 90% over the next few weeks as the cooling off period expanded across the cryptocurrency ecosystem.

But by the end of May, rune-related activity had more than tripled. For the first time, the total market capitalization of protocol assets has surpassed $1 billion, according to the protocol. GeniiData. That figure is from Exceeded 2 billion dollarsThis shows that the Runes are enjoying their comeback (even though it’s barely been a month).

Institutional excitement about Loon is no guarantee that the protocol will come to dominate the cryptocurrency industry, as many have assumed. But if current sentiment in East Asia is any indication, the cryptocurrency industry’s biggest players are coming to the conclusion that there is only one path to mainstreaming fungible Bitcoin tokens, and that path leads through Loon.

“If issuing a fungible token on the Bitcoin blockchain is the right move, it will determine which of Runes or BRC-20 will have better long-term viability and diversity.” MiXWeb3pseudonymous founder runes china community, said decryption. “Then the choice becomes much clearer.”

Editor: Andrew Hayward