'The elephant dances', why can Runestone's market value exceed BAYC?

The strength of the Bitcoin ecosystem Runes protocol has been significantly reflected in Runestone.

Recently, the floor price of the former NFT king Bored Ape Yacht Club (BAYC) once exceeded 12 Ethereum (ETH). Although the current price is back above 12 ETH, it has lost its position as the second NFT in market value.

According to data from Coingecko, Runestone’s floor price climbed to 0.065 Bitcoin (BTC), which is approximately $4,505, an increase of 33.2% in 24 hours. This jump brought Runestone’s market value to US$506 million, surpassing BAYC’s US$411 million and becoming the second largest project in the NFT market.

Compared with the rise of BAYC, Runestone’s market value growth can be said to have risen linearly. One month ago today, Runestone, which had not yet released an airdrop, was only extremely popular on the over-the-counter OTC platform Whales Market. Even if both buyers and sellers required double bets, its market value had reached US$143 million at that time, and the transaction price was around US$1,300.

Runestone achieved a 3.5x price surge in one month, from $1,300 to $4,505. Although in a currency circle full of legends of sudden wealth, such an increase may not be astonishing, but considering that the total number of Runestones is only 110,000, this increase is particularly astonishing. Compared with the total amount of 1 million of common NFT projects, Runestone's issuance is only ten times less, and its transaction fees are relatively high running on the Bitcoin network. Against this background, the growth of Runestone’s liquidity and market capitalization can be described as an “elephant dancing.”

Runes Protocol has strong expectations

Why can the market value of Runestone exceed BAYC in this month? Perhaps the main motivation comes from the strong performance of the Runes protocol that exceeded market expectations.

It is expected that later this month, as the Bitcoin halving event approaches, the Runes protocol will be officially launched on the main network. As the "singularity" of the "Big Explosion" of the Bitcoin ecosystem, Casey's influence on the entire Bitcoin ecosystem is unparalleled. The Runes protocol itself has a strong consensus, and the Runes protocol itself carries a strong consensus foundation. As this consensus continues to strengthen, the increase in asset value has become market consensus.

In order to prevent the first Rune from being snatched or pre-mined by VCs or project parties, Casey decided to hardcode the first 10 Runes (Rune 0 - Rune 9) into the Runes protocol, which only supports open mint, so that Everyone can participate fairly.

However, not everyone can get the first wave of crabs, and the threshold for actually participating in Runes Protocol Mint is not low. Similar to the early days of the Ordinals protocol, the Runes protocol requires users to set up a Bitcoin full node to participate in the new minting process. This is a very high threshold for most ordinary users. Therefore, for those users who want to join the Runes protocol but face high barriers to entry, investing in assets that already have a certain consensus and influence, such as Runestone, has become a cost-effective option.

So as the halving gets closer, the trading volume and price of Runes concept NFT are generally rising. As of the time of writing, according to magiceden data, four of the top ten Bitcoin NFTs by trading volume, including Runestone, are based on the Runes concept.

In fact, Runestone is not targeting BAYC

Although Runestone’s market value exceeds BAYC, Runestone is not targeting BAYC.

According to Ordinals developer Leonidas, the founder of Runestone, stated on social media that after being exchanged for tokens, Runestone’s goal is simple: to create the world’s top memecoin on the world’s top blockchain. Runestone's MEME coin code and supply will be determined by the community, and it does not necessarily need to be related to the Runestone theme. The design concept is completely open.

"Everyone mistakenly regards Runestone as an NFT collectible, but within a month, everyone will regard Runestone as Memecoin. If Memecoin is randomly pre-sold, it can skyrocket overnight To a market capitalization of US$1 billion, imagine what Memecoin can do on the Bitcoin chain." Leonidas wrote on social media.

Obviously, Runestone’s competitors are not NFT projects such as BAYC, but top Meme coins such as DogeCoin, Shiba Inu and PEPE.

Compare the market caps of some of the top meme coins currently on the market - DogeCoin has a market cap of $28 billion, Shiba Inu has a market cap of $16 billion, and PEPE has a market cap of $2.9 billion - Runestone's current $500 million Although the US dollar market value has exceeded that of the former NFT leader BAYC, it still has some way to go to become the top Meme coin.

As for whether Runestone will be "defeated" after the Runes protocol is launched on the mainnet, whether Runestone will stand firm in the round-up of many Runes assets, it will take some time to verify.

A new development recently announced by Leonidas is that Runestone NFT holders will have the opportunity to receive three rounds of Runes Memecoin airdrops, later this month, later this year, and "when we become the world's top Memecoin" .

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