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Crypto Traders Eye Ecosystem Tokens as Halving Sparks Investment Opportunity in Bitcoin Network

In preparation for Bitcoin’s upcoming halving event, crypto traders anticipate increased investment in related networks and ecosystem tokens as a result of reduced new coin supply. The halving, which lowers the rate at which new coins are created, has historically preceded a bull market for Bitcoin. Crypto trading firm Wintermute suggests that due to the lack of listed assets available for traders to invest in Bitcoin’s ecosystem, there is a “large, untapped pool of capital” waiting to be invested. Traders predict that tokens such as RUNE, STX, and ORDI could see significant growth should capital begin to flow into the Bitcoin ecosystem. Both THORChain’s RUNE and Stack’s STX have performed well in the past year, while ORDI, a meme coin inspired by the Ordinals protocol on Bitcoin, has experienced over 2,500% growth since its release last September. Bartosz Lipinski, founder of Cube.Exchange, also expects meme coins to gravitate towards Bitcoin-based projects as a result of Ethereum’s high transaction fees and network congestion. Lipinski believes that the recently launched Ordinals NFT standard may be superseded by the upcoming Runes protocol, which aims to create a more efficient mechanism for creating meme coins compared to existing platforms like Base and Solana.

Based on recent trends, Ordinal volumes have exceeded those of established cryptocurrencies like Ethereum and Solana, suggesting a heightened interest in the Ordinals protocol. However, non-fungible token (NFT) trading activity on other networks has decreased by 95% during this timeframe, indicating a focused interest in Ordinals. Parikshit Mishra edited the article.

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