Bitcoin Web3 Space Sees Tough Fight Between Runes and Blue-chip Ordinals

Soon after the Bitcoin halving event last Friday, the Bitcoin miners had a gala time despite the 50% drop in the mining rewards. Thanks to the frenzy around the Runes protocol that skyrocketed the Bitcoin transaction fees. The Bitcoin Web 3 space is once again buzzing with activity in April driven specifically by Runes and Bitcoin BRC20 Ordinals.

Bitcoin Ordinals Vs Runes

In early April, a notable uptick in Ordinals-related trading activity was observed across various marketplaces, as reported by QCP Capital. This surge was due to several key metrics, including transaction volume, daily user count, and the ratio of Inscriptions to ETH NFT volumes.

One potential driver behind this resurgence is the accumulation of inscriptions, which are slated to distribute runes to holders upon the halving event. Over recent months, holders of prominent blue-chip ordinals such as Nodemonkes and Bitcoin Puppets received airdrops of ordinals, granting them eligibility for receiving runes during the halving.

Additionally, the performance of other blue-chip ordinals has remained robust, with users actively seeking out ordinals airdrops that offer potential entitlement to runes.

Floor Price of Runes Projects Takes A Hit

Runes represent a fungible token standard native to Bitcoin, distinct from BRC20s as they operate within BTC’s native UTXO model. This design choice results in a reduced blockchain footprint, enhancing efficiency and alleviating congestion compared to BRC20s. I

In the lead-up to the halving event, runes have emerged as a notable sub-sector drawing significant attention within the Twitter community. Projects such as Runestones, RSICs, and RuneX have particularly captured the community’s interest, with an influx of new rune projects launched over the past 1-2 months.

However, despite the overall success of prominent rune projects, a noteworthy incident occurred on April 19 when the floor price of Runestone experienced a sudden ~20% decline within a 3-hour period. This drop followed an unexpected announcement by the project’s founder, @LeonidasNFT, regarding a crowdsourced raise, which prompted concerns and uncertainty (FUD) within the Runestone community.

After completing the DOG Runes snapshot at 840,269, the floor price of the Pre-Runes concept Ordinals NFT Runestone fell to 0.03 BTC, a drop of more than 60% in the past 24h. The floor prices of Bitcoin Puppets and NodeMonkes have increased by more than 20% and 7%, and their…

— Wu Blockchain (@WuBlockchain) April 22, 2024

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