Bitcoin Runes and BRC-20 tokens may just be the beginning of a new era in Bitcoin-based decentralized finance (DeFi).
According to Rich Rines, a Core DAO contributor who is actively involved in building Bitcoin DeFi solutions, the development of Runes and Bitcoin DeFi stems from a desire to enhance the functionality of the world’s most secure blockchain network. Rines explained to Cointelegraph that Runes is a fresh protocol that allows for the issuance of fungible tokens on the Bitcoin network. It was launched on April 20, which coincided with the Bitcoin halving event. Runes is part of a larger movement within the developer community, known as Bitcoin DeFi or BTCFi, which aims to expand the utility of the Bitcoin network.
While Runes has generated a lot of excitement among Bitcoin holders, Rines believes that this token standard is just a stepping stone in the evolution of BTCFi. The decentralized nature of the network suggests that there is much more to come. This sentiment is supported by recent data from Dune Analytics, which reveals that on April 20, Runes-related transactions accounted for the majority of Bitcoin transactions, representing 81.3% of daily BTC transactions.
In an effort to further drive innovation in BTCFi, Core Chain introduced the first noncustodial Bitcoin staking product on April 23. This product allows users to stake their Bitcoin without compromising the security of the network. Since the staked Bitcoin remains in the user’s wallet, it presents a risk-free opportunity for Bitcoin holders to earn yields on their assets.
Other protocols are also actively working on creating more utility for Bitcoin. Hermetica, for example, recently announced the launch of the first-ever Bitcoin-backed synthetic United States dollar. This synthetic asset is designed to generate yields and is set to be released in June. The goal is to bring more liquidity and use cases to BTCFi.
It’s clear that Runes and other developments in Bitcoin DeFi are providing valuable support for Bitcoin miners, as highlighted by TeraWulf COO. These advancements are pushing the boundaries of what is possible with Bitcoin and opening up new opportunities for its users. The future of Bitcoin-native decentralized finance looks promising, and there is much more to come.