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Fungible Bitcoin Tokens Experience Volatility Ahead of Bitcoin Halving
As the cryptocurrency market braces for the upcoming Bitcoin halving and the launch of the Runes protocol, fungible Bitcoin tokens issued under the BRC-20 standard are facing significant volatility. Over the past week, four out of the top five BRC-20-based tokens by market capitalization have displayed bearish trends, with only Bitcoin Pups (PUPS) bucking the trend with a remarkable 139% increase in value.
The leading tokens ORDI, SATS, Multibit (MUBI), and Ordiswap (ORDS) have all recorded losses, with ORDI plummeting by 43.4% to $42.67 and SATS dropping by 46.6% to $0.00000027 in the last seven days. Conversely, Bitcoin Pups has surged by 1,000% to achieve a market capitalization of $365 million, fueled by the growing excitement surrounding the Runes protocol.
Isabel Foxen Duke, General Partner at Unbroken Chain, highlighted the contrasting performance of meme coins like Bitcoin Pups against more traditional BRC-20 tokens like Ordi. She attributed the surge in PUPS value to the anticipation surrounding the Runes protocol, which has generated considerable market interest.
Smaller BRC-20 Tokens Showcase Resilience
Despite the overall decline in major BRC-20 tokens, smaller projects like Piza (PIZA) and Pepe (PEPE) have demonstrated significant growth. Piza has soared by 635.9% to $1.50, while Pepe has seen a 137.5% increase to $0.63 in the same period.
2020: DeFi
2021: NFTs
2022: DAOs
2023: Ordinals
2024: Runes— Ord.io (@ord_io) April 12, 2024
Ordi, introduced in April 2023 as the pioneering BRC-20 token created by pseudonymous developer Domo, reached an all-time high of $95.52 and a market capitalization of $928 million in March. Subsequently, a gradual decline led to a 53% drop from its peak, relegating Ordi outside the top 100 BRC-20 coins.
Foxen Duke noted the correlation between Ordi’s performance and altcoins, attributing the decline to OkX exchange’s dominant volume share and general market trends affecting alternative coins. The downturn also affected inscription bridges, evident in the reduced values of BRC-20-based EVM tokens like MUBI and ORDS.
Anticipation Builds for Runes Protocol Launch
As preparations intensify for the Runes protocol rollout, liquidity appears to be shifting away from Ordinals projects in anticipation of trading opportunities surrounding the halving event. With the promise of enhanced features and potential incentives offered by Runes, market participants are strategically positioning themselves to capitalize on the upcoming developments.
Foxen Duke highlighted the shifting dynamics within the BRC-20 ecosystem, emphasizing the strategic reallocation of liquidity to optimize trading strategies leading up to the highly anticipated Runes protocol launch.
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