- Pinnacle B thinks the Runes launch could have a greater impact than the Bitcoin halving.
- Runes enables the creation of tokens on Bitcoin and could drive speculation and increase transaction fees.
- According to reports, Runes hit a climax when a trader paid $500,000 in transaction fees.
An HYDT Protocol project ambassador identified as Pinnacle B on X thinks the launch of Bitcoin Runes could have a greater impact on the crypto market than the Bitcoin halving event. In a recent post, Pinnacle noted that Runes will enable the creation of tokens on top of Bitcoin and could drive speculation and increase transaction fees.
Pinnacle highlighted some related developments in the blockchain ecosystem to offer a background to his prediction. He cited the surge in Bitcoin fees due to Ordinals NFTs and memecoins like PUPS, noting that they triggered Bitcoin’s network fees to triple.
In addition to the tripling of Bitcoin network fees, the crypto personality noted that fees on the Ethereum network declined by 5% due to reduced network activity, indicating a migration of users to the Bitcoin network. He also stated that $180 million worth of Bitcoin has left centralized exchanges (CEXs) in the past week, marking six consecutive weeks of net outflows.
The HYDT Protocol ambassador further highlighted the withdrawal of half a billion dollars worth of Ethereum from CEXs, the most since February, as another signal of Runes’ potential impact on the crypto ecosystem. He believes the innovation is introducing new dynamics to the crypto sector, with significant potential of dictating the pace of the crypto market in the current bull cycle.
Runes is a novel protocol designed to facilitate the creation of fungible tokens on the Bitcoin Network. The novel protocol launched alongside the recent Bitcoin halving, triggering a hike in transaction fees on the Bitcoin network. According to reports, the impact of Runes hit a climax when a trader paid $500,000 in transaction fees.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Source: https://coinedition.com/crypto-user-suspects-runes-to-impact-the-market-more-than-bitcoin-halving/