Bitget Research: Runes Protocol Launch Sparks Surge in BTC Network Fees, BONK Takes Lead in Solana Meme Rally

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Bitget Research2024/04/22 07:22

By:Tommy & Jarseed

In the past 24 hours, many new popular tokens and topics have emerged in the market, which are likely to be the next wealth creation opportunities.

Overview

Market expectations for rate cuts have decreased, and the Federal Reserve's alternating hawkish and dovish stances have heightened market uncertainty, leading to a significant drop in U.S. stocks. Meanwhile, Bitcoin has shown remarkable price resilience around its halving event. The launch of Runes has triggered a surge in Bitcoin network transaction fees, while a token burn proposal by BONK DAO led to a rally in Solana memecoins over the weekend.

Sectors with strong wealth creation effect: Solana memecoins.
Sectors to focus on next: Runes protocol.
Top searched tokens and topics: MultiBit, GUMMY, and TON.
Potential airdrop opportunities: LI.FI, and Grass.

Data collection time: April 22, 2024, 4:00 AM (UTC)

1. Market Environment

Last week, the Federal Reserve's hawkish stance strengthened, leading to diminished expectations for rate cuts. The uncertainty in the market heightened due to the Fed’s alternating hawkish and dovish stances recently. Bitcoin displayed considerable resilience around its halving, quickly recovering from a brief drop caused by worsening conditions in the Middle East and stabilizing the price between $63,000 and $65,000 over the weekend.

Bitcoin halving was completed, and the Runes protocol went live on the Bitcoin network on the day of the halving, causing a significant increase in network transaction fees. SATOSHI•NAKAMOTO currently has 19,900 holders, making it the Runes asset with the highest number of holders and the strongest market consensus. However, the price of RuneStone crashed within two days of the protocol's launch, suggesting that the overall wealth effect of the Runes protocol did not meet the market's high expectations prior to the launch.

2. Wealth Creation Sectors

2.1 Sector Movements – Solana memecoins

Main reason: The market rebound, particularly in the memecoin sector, with Solana memecoins showing significant gains. On April 20, BONK DAO proposed burning over 278 billion BONK tokens, which represented all the BONK tokens earned from the revenue-sharing agreement with BonkBot since its launch at the end of 2023. BONK saw a significant increase of 32% on the same day, and other leading and mid-to-lower tier Solana memecoins also surged over the weekend.

Gainers: BONK rose by 32% in a single day on April 20, with the price of WIF breaking 3 USDT again. Lower tier memecoins on Solana like SOLAMA also saw significant increases over the weekend.

Factors affecting future market conditions:

The continuous growth of TVL in the Solana ecosystem and the performance of leading projects will directly affect the entire sector. Promotions by top projects in the Solana ecosystem, such as Jupiter and Backpack, that promote memecoin trading can also lead to high wealth effects for certain memecoins, like the increase in WEN token price during the early stages of the WEN trading promotion on Backpack.
The trends and major moves of the most recognized Solana memecoins, such as BONK, WIF, and BOME, will also have a significant impact on the entire sector.

2.2 Sectors to Focus on Next — Runes protocol

Main reason:

Even though the wealth effect from the Runes launch fell short of the market expectations, the surge in BTC network transaction fees has proven its popularity. From a technical perspective, the asset issuance in the Runes protocol is more streamlined and easier to manage, suggesting a potential to surpass other inscription assets in terms of popularity and market acceptance.
However, it is also important to note that many projects have reserved a substantial number of tokens during the issuance of Runes assets, which has resulted in the Runes not promoting a Fair Launch narrative like BRC-20 tokens. This lack of meme attributes might deter some investors from participating in such projects.

Specific tokens:

SATOSHI • NAKAMOTO

3. Top Searches

3.1 Popular DApps

LI.FI Protocol:

The LI.FI Protocol is a comprehensive service that supports multi-chain cross-chain assets and integrates multiple DEXs seamlessly. Recently, there has been a rapid increase in on-chain transactions (TX) as users engage extensively with the protocol in anticipation of potential airdrops. The LI.FI Protocol has a strong funding background, having completed a $17.5 million Series A funding in 2023. The project was also notably active at the Dubai Token 2049 conference. Community expectations for the protocol's token issuance have led to a high volume of on-chain interactions. Investors who have not yet engaged with the protocol might consider increasing their interactions to potentially qualify for future airdrops.

3.2 X (former Twitter)

Bitget Research: Runes Protocol Launch Sparks Surge in BTC Network Fees, BONK Takes Lead in Solana Meme Rally image 0

MultiBit:

MultiBit is a cross-chain service that enables users to bridge BRC-20 tokens from Bitcoin network to EVM chains. With the recent launch of the Runes protocol, MultiBit has announced its support for cross-chain services for the Runes protocol. Currently, MultiBit facilitates the cross-chain movement for most assets within the Bitcoin ecosystem, providing sufficient off-chain liquidity for Bitcoin assets. As the market's focus on the Bitcoin ecosystem and its derivative products increases, the demand for MultiBit is expected to grow continuously, making it a project for investors to keep an eye on.

3.3 Google Search (global and regional)

Bitget Research: Runes Protocol Launch Sparks Surge in BTC Network Fees, BONK Takes Lead in Solana Meme Rally image 1

Global focus:

Gummy:

Gummy is a memecoin on Solana that has recently gained popularity, themed around gummy bears. The project conducted a significant airdrop at token generation, with the number of token holders reaching 44,000. Following its TGE, the token's value increased by 50x and currently stabilized at around 40x, with a trading volume of $40 million within 24 hours. Since the memecoin frenzy on Solana, there hasn't been another project with such a remarkable initial token distribution or significant trading volume and price increases. Gummy’s launch has captured attention, with high expectations for its upcoming exchange listings and continued momentum.

Regional focus:

(1) English-speaking countries show significant interest in TON tokens and the ecosystem:

The TON ecosystem has developed rapidly recently, with a large number of ecosystem and memecoin projects emerging on the TON chain, showing significant wealth creation effects. As participation in the TON ecosystem requires using TON as the base currency, the demand for TON has increased, further fostering the development of the ecosystem. Additionally, Pavel Durov, founder of Telegram, recently appeared at Token2049, announcing the integration of the stablecoin USDT into the TON chain and revealing a narrative for tokenizing Telegram emojis. Given the TON chain's extensive user base combined with its openness and inclusiveness, it is highly worth investors' attention.

(2) Africa, Latin America, and the CIS region continue to show high interest in the FLOKI token:

FLOKI has frequently become a trending word in the Middle East and Latin America, indicating a general high interest in memecoins in these regions. Additionally, FLOKI, being a major memecoin traded on local exchanges with local trading pairs, has a substantial user base. In volatile market conditions, speculating on memecoins like FLOKI is also quite common.

4. Potential Airdrop Opportunities

LI.FI Protocol

The LI.FI Protocol is a comprehensive service that supports multi-chain cross-chain assets and integrates multiple DEXs seamlessly. It currently supports 20 blockchains, 14 cross-chain bridges, and 33 decentralized exchanges.

The LI.FI Protocol has a strong funding background, having completed a $17.5 million Series A funding round in 2023. The round was led by CoinFund and Superscrypt, with participation from Bloccelerate, L1 Digital, Circle, Factor, Perridon, and Theta Capital.

To be eligible for the airdrop: Users need to log into the LI.FI protocol website, cross-chain assets of a certain value, and maintain a certain level of on-chain activity.

Grass

Grass is the flagship product of Wynd Network, enabling users to profit by selling unused network resources for internet connectivity. For individuals, it functions as a network extender that is downloaded, retained, and then operates in the background, facilitating access to public network data in exchange for payment in the native token of the protocol. Grass specializes in converting public network data into AI datasets, thereby simplifying access to public data for open-source AI projects.

Wynd Network has completed a $3.5 million seed funding round led by Polychain Capital and Tribe Capital, with participation from Bitscale, Big Brain, Advisors Anonymous, Typhon V, and Mozaik, bringing its total funding to $4.5 million.

To participate, register on the GRASS official website, install the web plugin, wait for the network connection to complete, and select “Open Dashboard” to enter your control panel. Here, you can see your connection status and earn points for contributing bandwidth by being online. Your daily points income and network status can be viewed on the control panel page.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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