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Bitcoin recently surged to a new all-time high of $93k,
leaving investors anticipating the next rally of $100k. However, as BTC continues
to soar, a new trend involving Bitcoin-based meme coins is emerging. These niche tokens
have attracted heightened speculation, driven by the excitement
around Bitcoin’s rise.
Bitcoin Memecoins
Bitcoin’s rally to $93,000 ignited fresh excitement across
the crypto market. Memecoins tied to Bitcoin, including PUPS, DOG•GO•TO•THE•MOON,
and BILLION•DOLLAR•CAT, are capturing the attention of traders as a high-risk,
high-reward alternative, Coindesk reported.
According to CoinGecko data, some of these tokens have posted impressive gains over the past 24 hours, with smaller tokens like CYPHER•GENESIS (CYPHER) rising by 50%. The surge in interest for Bitcoin-based meme coins coincides
with a significant shift in the underlying infrastructure.
The Runes protocol,
a platform for creating fungible tokens directly on Bitcoin, has reportedly
overtaken BRC-20 in market capitalization. Launched in early 2024, Runes utilizes Bitcoin’s Unspent
Transaction Outputs (UTXOs) model, enabling the creation of fungible tokens
without congesting the network.
Unlike BRC-20, Runes aligns more closely with Bitcoin’s
native transaction structure, potentially reducing the buildup of UTXOs.
Despite the recent excitement, on-chain data reportedly shows no immediate
increase in usage metrics for Runes.
A New Bet on Bitcoin
Memecoins have become a speculative asset class during
periods of low volatility in more established crypto sectors. With Bitcoin
reaching new peaks, traders are shifting to meme coins to gain exposure to the
broader Bitcoin ecosystem without directly investing in BTC.
The trend reflects previous surges in meme tokens on other
networks like Ethereum and Solana, where tokens experienced significant rallies
following gains in their respective parent networks.
This article was written by Jared Kirui at www.financemagnates.com.
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