Runes Solana Meme Coin Plummets Following Market Surge

2 mins mins

Key Points:

The Runes Solana meme coin launched by Runetoshi saw its market cap spike to $28 million before plummeting over 96% within 24 hours.
While new protocols like Runes and Ordinals have diversified the Bitcoin network, critics argue they contribute to network congestion.

The Runes Solana meme coin, launched yesterday by developer Runetoshi, experienced a dramatic rise and fall in market capitalization.

Runes Solana Meme Coin Suffers Massive 96% Crash

Initially soaring to a peak valuation of $28 million, the token abruptly crashed in a violent sell-off, losing over 96% of its value within 24 hours. The market capitalization now stands at just $420,000. Runetoshi’s X account was also suspended following the coin’s rapid decline.

The meme coin leveraged the Runes Protocol, a system developed for creating fungible tokens on the Bitcoin network. The protocol was introduced in September 2023 by Casey Rodarmor, the creator of the Ordinals protocol, and officially went live during Bitcoin’s fourth halving in April 2024.

Bitcoin Ecosystem Faces Growth and Controversy

Historically, the Bitcoin network supported only one token, Bitcoin (BTC), due to its limited programming capabilities. However, Ordinals opened the door to new token issuance, sparking the development of protocols such as BRC-20, ARC-20, ORC-20, ORC-CASH, SRC-20, and older solutions like RGB Counterparty, Omni Layer, and Taproot Assets.

While these advancements have made the ecosystem more dynamic, critics argue that they contribute to network spam and unnecessary content uploads. This, in turn, increases transaction costs for users and places additional hardware demands on miners.

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