Rune Leads a New Trend, DOG Rises in Popularity Again

1. Introduction to Runes

In September 2023, the founder of the Ordinals protocol proposed the Runes protocol, aiming to build an alternative token system based on BTC UTXO. The protocol was officially launched on April 20 of this year during the Bitcoin halving, with initial popularity unprecedented. Recently, DOG surged from its low to a new high, driving a wave of increase and new attention for the rune assets.

1. The operation mechanism of rune

The Runes protocol issues and tracks tokens using Bitcoin's native UTXO model, making it more native and decentralized. Runes balances are directly held by UTXOs, and a single UTXO can accommodate any number of runes, eliminating "garbage" UTXOs, improving efficiency and reducing on-chain space usage.

The data of Runes is stored in the OP_RETURN field, allowing for the storage of 80 bytes of data in the transaction output. Transactions use the OP_RETURN tag in the protocol message, followed by the data push of capital letter R. Issuance or transfer transactions specify and allocate in subsequent data pushes to UTXO. Invalid protocol messages result in the destruction of runes.

2. Comparison of Runes and BRC-20

Compared to BRC-20, the Runes protocol has the following characteristics:

(1) Runes are designed for fungible tokens, based on the native BTC architecture, not relying on off-chain data and requiring only a single minting, making it simpler and more efficient.

(2) Runes data is stored in an 80-byte OP_RETURN field, occupying less space and reducing blockchain bloat.

(3) The Runes protocol is based on the UTXO model, integrated with the native BTC architecture, inheriting its security. It has strong future scalability and can be perfectly compatible with ecological development routes like the Lightning Network and BTC L2.

3. The meaning of runes

( created a breakthrough method for issuing BTC assets that allows for the creation of a dedicated, interchangeable, and more suitable token standard for speculative activities.

) The asset issuance method is simpler, more efficient, and compatible, reducing network congestion and allowing for seamless compatibility with various upgrades and ecological solutions of the BTC network in the future.

( The rising popularity can further address the security budget issues of Bitcoin, providing miners with new sources of income, which is beneficial for maintaining the network's security and sustainability.

2. Track Data Overview

According to BTC network data, runes currently account for about 20% of the total transaction volume on the network. When it was first launched, the trading was very hot, reaching a peak of 81.3%, and then it quickly cooled down. Currently, the proportion of runes on the network is about 10-40%.

![DOG leads the rune popularity back, when will the track usher in an explosion?])https://img-cdn.gateio.im/webp-social/moments-eb0ffef22558d3fe118db70b4b8559c7.webp(

Compared to runes and BRC-20, runes have become the most active L1 asset outside of BTC transactions, with a ratio of about 4:1 between the two. The highest proportion of runes occurred during the halving launch, at about 99%, while the lowest was around 55%. Currently, the trading enthusiasm has surpassed that of BRC-20 tokens.

![DOG leads the rune heat back, when will the track explode?])https://img-cdn.gateio.im/webp-social/moments-5dba07164c130e4c683659d62d2526b0.webp(

In terms of fee contribution, the current native Bitcoin transaction fees account for 70-80%, rune accounts for 10-20%, and Ordinals along with BRC-20 account for about 10%. On halving day, the proportion of rune reached as high as 70%. Currently, the speculation around rune has expanded the income sources for BTC network miners, and it has the highest proportion among new assets.

![DOG Leads Rune Popularity Back, When Will the Track See an Explosion?])https://img-cdn.gateio.im/webp-social/moments-75d0c66c3cd2af6015e7e1c96dbfe497.webp(

If we consider runes and BRC20 as memes, the market cap of meme coins on the Bitcoin chain is the lowest compared to other chains, accounting for less than 0.1% of that chain. In horizontal comparison, the leading meme coins on both the ETH and SOL chains account for over 3% of their respective market caps. As BTC has the highest consensus, market cap, and attention from mainstream funding, there is potential for meme coin market cap to further expand. In vertical comparison, runes currently surpass BRC-20 in terms of trading volume and contribution fees, but the leading rune still lags behind the leading BRC-20. If it can be listed on a first-tier trading platform, it has the potential to surpass ORDI.

![DOG leads the rune popularity back, when will the track usher in an explosion?])https://img-cdn.gateio.im/webp-social/moments-808cae98824e7196e8bfaade6e246f24.webp(

3. Rune Assessment System and DOG Analysis

The assessment of popular projects in runes can be analyzed from three stages and nine dimensions:

• Early focus: distribution method, degree of decentralization, founders and storytelling
• Mid-term focus: propagation continuity, price continuity
• Focus during the mature stage: trading volume, market value, chip structure, price stability

Based on the above logic, the leader in the current rune track is DOG:

1. Distribution method: The distribution design progresses layer by layer and bears all on-chain costs, with a very large scale.

2. Degree of dispersion: Early stakeholders with high quality and a large number achieved rapid cold start and extensive dissemination among core users.

3. Founders and Storytelling: Founder Leonidas is an OG of the BTC community and has a close relationship with Ordinals founder Casey; the name of the rune stone is rich in topics and orthodoxy; DOG is the most viral meme image in the crypto world.

4. Continuity of Communication: Founder Leo has strong communication skills and resources, continuously capturing the market's attention.

5. Price Continuity: The speculation of rune stones and runes has led to a price increase after a month of market pricing and consolidation.

6. Trading Volume: DOG has consistently been the top traded asset since its launch, with a current daily trading volume exceeding $70 million.

![DOG leads rune popularity back, when will the track see an explosion?])https://img-cdn.gateio.im/webp-social/moments-bdb7458e5eaa76cde904f29a4573763d.webp(

7. Market Cap: After removing ZZZ runes with very low trading volume and high unit price, the market cap of DOG has basically maintained the first position throughout the entire period after its issuance.

![DOG leads the rune popularity back, when will the track welcome an explosion?])https://img-cdn.gateio.im/webp-social/moments-f34363e2c2e0e61a683f3cb0451e929a.webp(

8. Chip structure: A large number of holders, strong consensus, but the chip concentration is not high enough.

![DOG leads rune popularity back, when will the track see an explosion?])https://img-cdn.gateio.im/webp-social/moments-876f7d61cb99dd639a13af9a0d016009.webp(

9. Price Stability: After the price consolidation at the bottom, it has steadily risen, with strong buying power.

![DOG leads rune popularity back, when will the track welcome an explosion?])https://img-cdn.gateio.im/webp-social/moments-a0725c25ddf7ab7ec6fe5edde7d1cfb0.webp(

![DOG leads the rune popularity back, when will the track experience an explosion?])https://img-cdn.gateio.im/webp-social/moments-d59e22a3cb255cbd615c9536cb46c22d.webp(

![DOG leads the rune heat to return, when will the track see an explosion?])https://img-cdn.gateio.im/webp-social/moments-9af4478779050d3e939138f8107d846d.webp(

![DOG leads rune popularity back, when will the track usher in an explosion?])https://img-cdn.gateio.im/webp-social/moments-4ce26cbeaa41997993c6dc9ad6d84b5e.webp(

![DOG leads the rune heat back, when will the track welcome an explosion?])https://img-cdn.gateio.im/webp-social/moments-9aaa624a45b4074b9045889a36d00f5c.webp(

![DOG leads the rune popularity back, when will the track welcome an explosion?])https://img-cdn.gateio.im/webp-social/moments-c937589e5cf0ab3b65cfb77f882260b5.webp(

![DOG leads rune popularity back, when will the track see an explosion?])https://img-cdn.gateio.im/webp-social/moments-29eece7409226eaa6a3012fa3ad15432.webp(

4. Summary

1. Rune is a protocol specifically designed for fungible tokens, which is technically simpler, more efficient, and compatible compared to BRC-20. In terms of trading share proportion and transaction fee contribution, it has surpassed BRC-20 tokens, becoming a new asset form that cannot be ignored.

2. Runes currently mainly serve to enhance the attention and capital capture of the Bitcoin network as meme coins, holding significance for continuous development; however, based on the data, they have yet to fully explode and still have further price discovery potential.

3. This article proposes a three-stage, nine-dimensional evaluation system for the rune project. Currently, DOG is in a leading position in the track, but the chip structure is relatively dispersed, and it may take some time to accumulate before landing on mainstream trading platforms.