FluidTokens, a company based in Switzerland that specializes in decentralized finance (DeFi), has introduced the world’s first decentralized exchange (DEX) dedicated to Runes. This groundbreaking platform operates on both the Bitcoin and Cardano blockchains, providing users with a unique way to engage with meme coins through DeFi services.
The new DEX from FluidTokens is designed to facilitate the trading and liquidity of Runes, a new type of digital asset that has gained popularity in the crypto community. Created by Casey Rodarmor, the mastermind behind the successful Ordinals protocol on Bitcoin, Runes aim to enhance the Bitcoin ecosystem by enabling the creation and trading of meme coins directly on the blockchain.
The protocol was launched on April 20, coinciding with the Bitcoin halving event, which historically leads to an increase in Bitcoin’s value and mining activity. This timing resulted in a surge of activity in the crypto market, leading to higher transaction fees and unprecedented profits for Bitcoin miners. In the first week alone, miners earned over $107 million.
The Runes protocol offers a user-friendly alternative to other Bitcoin-based protocols like BRC-20, focusing on simplicity and accessibility. By integrating this protocol into their decentralized exchange, FluidTokens aims to streamline the trading of meme coins, making it easier and more efficient for users. This development is significant because it allows users to leverage the security and transparency of the Bitcoin blockchain.
FluidTokens’ ultimate goal is to bridge the gap between traditional finance and DeFi. They have developed a decentralized exchange (DEX) that supports Runes and seamlessly integrates with major Bitcoin wallets. Matteo Coppola, CEO and Co-Founder of FluidTokens, expressed his excitement about unveiling the first permissionless lending protocol that supports Runes and Ordinals, along with major BTC wallets. This lending protocol operates independently without the need for a centralized entity or a second layer, thanks to their innovative BitWeave technology. Coppola also mentioned that they are working on several other DeFi services that will operate directly on the Bitcoin Layer.
Before the halving, there was much anticipation surrounding the Runes protocol, with many expecting it to be a significant advancement. However, since the halving, there has been a noticeable decline in activity. On April 30, 2024, there were 86,047 etchings recorded on the Bitcoin blockchain, but in the following 18 days, only 6,122 etchings were observed, indicating a sharp decrease.
The number of Runes minted and transactions made varied significantly, with the highest activity occurring on May 3, where 1,203 Runes were etched, and the lowest activity on May 12, with only 120 Runes created. By May 17, activity had further declined, with only 143 etchings recorded.
Alongside the decrease in activity, the fees charged for producing Runes have also declined. BTC miners have earned $4.7 million in fees from Runes so far, with the majority of this revenue generated during the busy period from April 19 to April 30.
Data from Dune Analytics has revealed a significant slowdown in Ordinal inscriptions since April 20, with daily inscriptions falling below 35,000. Despite the initial excitement for Runes and Ordinals inscriptions, the data suggests that interest has waned, particularly in the month following the Bitcoin halving and the launch of the Runes protocol.