A New Bitcoin Season Ignited by the Runes Protocol

The upcoming 2024 halving in the world of cryptocurrency is a significant event. This year, the Runes protocol and the search for the legendary first satoshi of the halving block will begin simultaneously, potentially making it an even more important event in Bitcoin’s history. The Ordinals protocol, which is the second phase of Bitcoin, was launched in December 2022 and brought a cultural movement to the blockchain by allowing users to put various files on the Bitcoin blockchain. Following the success of the Ordinals protocol, developer Casey Rodarmor introduced the Runes token protocol, which will activate during the halving. A battle for block space will occur as players compete to issue the first tokens and secure the best token names. Exchanges like Magic Eden and OKX are already preparing to list the main tokens created with the Runes protocol.

Unlike Ethereum and Solana, which are known for application development and asset issuance, Bitcoin has historically been seen as a purposeless asset. With the launch of the Ordinals protocol, thousands of people have been using the Bitcoin network to acquire assets priced in Bitcoin, leading to over $3 billion being moved through Ordinals assets in just over a year. This cultural impact has reignited innovation in the Bitcoin market, with improvements in wallets, nodes, and other Bitcoin-related products. Discussions surrounding decentralized finance and Bitcoin’s layer-2 solutions have also gained attention. The Runes protocol represents the next phase of Bitcoin following the success of the Ordinals protocol.

The halving block will be highly contested, with retail competition for block spaces and a duel among miners. The miner who mines the halving block will receive a satoshi classified as “Epic,” estimated to be worth over $1 million. Some projects are creating solutions to scale trading on the Runes protocol in anticipation of network congestion. Platforms like RuneChain, which focus on Bitcoin layer-2 solutions for Runes, are emerging. Users are educating themselves about Bitcoin and UTXOs to gain an advantage during the token launches. NFT communities, such as Pizza Ninjas, have also played a role in educating their holders about the Runes protocol.

A “pre-Runes season” has been occurring in the market, with some Runes-standard tokens being distributed through airdrops to Bitcoin NFT holders. The distribution models vary, with some based on snapshots of NFT holders and others based on the duration of NFT holdings. Users also have the option to purchase BRC-20 tokens that will migrate to the Runes standard. The market is preparing for these developments, and the table in the article provides information about the pre-Runes projects, marketplaces, and launchpads set to launch. The Runes tokens are expected to be historic and transformative, and nothing will stop their arrival.