The introduction of the Runes Protocol–a new fungible token standard on Bitcoin–in April 2024 stirred things up in the Bitcoin community, as you can now easily launch and trade tokens on the Bitcoin network.
This reader-friendly guide will teach you everything you need to know about Runes tokens, with a full glossary at the end.
Read on to learn more about Runes, what makes them unique and how you can get them.
Runes was created by well-known developer Casey Rodarmor in September of 2023. Casey is also the creator of Ordinals, a new feature on the Bitcoin blockchain that allows for the creation of unique, digital artifacts by inscribing data directly onto individual Satoshis, the smallest units of Bitcoin.
BRC-20s have been the current Bitcoin token standard, but they have an issue of creating surplus “junk” UTXOs. These can clog up the network, making for a less-than-seamless experience for users.
UTXOs, or Unspent Transaction Outputs, are essentially digital assets that you have received but haven't spent yet.
Bitcoin Runes is an attempt to clean up the network, while allowing traders to enjoy their memecoins on the mother chain.
Bitcoin Runes are fungible tokens on Bitcoin. Users etch and mint runes through the Runes Protocol.
Bitcoin Runes uses a UTXO-based protocol, where each transaction starts by picking up pieces of Bitcoin that haven't been spent yet (like digital change) and uses them to create new transactions. Tracing each Bitcoin back to its creation ensures that every coin is unique and hasn't been falsely duplicated, giving you confidence that the Bitcoin you own or accept in a transaction is genuine and truly yours.
Compared to other protocols that may rely on off-chain data or special tokens, Runes utilizes Bitcoin's native features for on-chain data storage. This allows for less of the “junk” UTXOs we mentioned earlier, which can bog down the network, causing transactions to be slower, more expensive and less reliable.
Specifically, Bitcoin Runes’ on-chain data storage is in the OP_RETURN part of a transaction. Picture jotting down a secret note on your Bitcoin transaction. OP_RETURN is that magic pen that lets you leave your mark without moving any actual Bitcoin. This keeps Bitcoin transactions neat and tidy because it doesn't add extra work for the network, which can affect the overall user experience.
You may also hear people talking about Runes having lightning compatibility. This means that Runes can use the Lightning Network, a separate layer on top of Bitcoin, to enable faster and cheaper transactions. This allows Runes transactions to bypass the usual delays and high fees of the Bitcoin network by using this faster, more efficient system.
The Runes Protocol isn’t the first to create fungible tokens on Bitcoin. A notable predecessor was the BRC-20 standard. The problem with BRC-20s is that they tend to clog up the Bitcoin network, increasing things like transaction time and fees. That can make for a less than ideal experience for users, which is where Runes comes in.
Runes were created to be both more efficient and simpler than BRC-20 in the hopes that, among other things, they’ll also appeal to a wider range of users.
One notable difference, for example, is that BRC-20 tokens need three transactions per transfer, whereas Runes only need one, making them faster and cheaper than their predecessor.
By adopting Bitcoin’s UTXO model instead of the account model used by BRC-20, the Runes Protocol minimizes its on-chain footprint and becomes more efficient.
Finally, the indexing tools required to check your balances and other functionalities for BRC-20 are much more complex than the ones the Runes Protocol requires.
We can’t write about why you should be excited for the Runes standard without mentioning its creator, Casey Rodarmor. A huge amount of the excitement around Runes comes from the fact that Runes has Casey’s name on it – him blessing the protocol and working on the core team adds a whole new layer of umph to the project.
Runes has the potential to attract a wider audience. Runestone, a pre-Runes NFT project, airdropped a free Runestone to wallets that had 3 or more digital items (inscriptions) on the Bitcoin blockchain before the Runestone project launched. Runestone is attracting a lot of excitement around what holding this Ordinal could mean for receiving Runes.
Excitement isn’t the only thing that could attract more users. Typically Ordinals and other NFT collections limit their size to preserve collectibility, but Runes and similar types of tokens can be made in much larger amounts. This means it's easier for more people to own them and join the community of collectors.
The attention around Runes as well as its accessibility could attract more worldwide adoption, something that is core to Bitcoin’s mission.
“Our mission is to help everyone, everywhere be more economically free.”
Source: Bitcoin.com
Runes could offer a more secure and reliable platform for token creation and transactions. By using the UTXO for on-chain data storage, it inherits the security model of Bitcoin for stronger safety features and a reduced risk of security holes, aka vulnerabilities.
Being UTXO-based also means that Runes will be more resistant to reorganizations, which are when the Bitcoin network has to choose between two versions of its transaction history. Being more resistant to reorganizations means Runes transactions are less likely to be affected by changes in the Bitcoin network's transaction history, providing greater stability for these transactions.
Runes makes creating and managing new tokens simple and streamlined for developers. For the user, this means more developers are willing to build, which means more tokens and more things to get excited about.
Bitcoin Runes are fungible tokens on Bitcoin. Users etch and mint runes through the Runes Protocol.
Bitcoin Runes uses a UTXO-based protocol, where each transaction starts by picking up pieces of Bitcoin that haven't been spent yet (like digital change) and uses them to create new transactions. Tracing each Bitcoin back to its creation ensures that every coin is unique and hasn't been falsely duplicated, giving you confidence that the Bitcoin you own or accept in a transaction is genuine and truly yours.
Compared to other protocols that may rely on off-chain data or special tokens, Runes utilizes Bitcoin's native features for on-chain data storage. This allows for less of the “junk” UTXOs we mentioned earlier, which can bog down the network, causing transactions to be slower, more expensive and less reliable.
Specifically, Bitcoin Runes’ on-chain data storage is in the OP_RETURN part of a transaction. Picture jotting down a secret note on your Bitcoin transaction. OP_RETURN is that magic pen that lets you leave your mark without moving any actual Bitcoin. This keeps Bitcoin transactions neat and tidy because it doesn't add extra work for the network, which can affect the overall user experience.
You may also hear people talking about Runes having lightning compatibility. This means that Runes can use the Lightning Network, a separate layer on top of Bitcoin, to enable faster and cheaper transactions. This allows Runes transactions to bypass the usual delays and high fees of the Bitcoin network by using this faster, more efficient system.
The Runes Protocol isn’t the first to create fungible tokens on Bitcoin. A notable predecessor was the BRC-20 standard. The problem with BRC-20s is that they tend to clog up the Bitcoin network, increasing things like transaction time and fees. That can make for a less than ideal experience for users, which is where Runes comes in.
Runes were created to be both more efficient and simpler than BRC-20 in the hopes that, among other things, they’ll also appeal to a wider range of users.
Once you're ready to explore and buy BTC Runes, here are some steps you can take:
First, you’ll need to set up a Bitcoin wallet that’s compatible with Runes, such as the Magic Eden Wallet. It lets you store, send and receive your Runes and also swap different assets from within the wallet, integrate with different dApps across the ecosystem, etc.
Connect the wallet to the Magic Eden marketplace using the ‘Login’ button at the top right of the screen.
To get Runes, you’ll first need to get some bitcoin. You can either send some BTC you already have to your ME wallet or you can buy bitcoin via the wallet. The Magic Eden Wallet lets you buy BTC using the tab ‘Trade’ and then clicking on ‘Buy’ at the top.
Then, enter the amount you want and pay using your debit card.
To find Runes, go to the ‘Runes’ part of the Magic Eden marketplace (hint: it’s in the upper left corner, right next to ‘Collections’). You can browse the top Runes by volume, gainers, holders or the number of trades, or use the search bar if you’re looking for something more specific.
Once you’ve found the Runes token you want, click on it. Then enter the maximum amount you’re willing to buy in the ‘Limit’ tab (every Runes token has a minimum, so you can just click the ‘Min’ button in the ‘Amount’ field to autofill) or choose from an offered quantity in the ‘Market’ tab. Either way, make sure you’re happy with the terms, then click on ‘Buy.’
Once the Runes have made it to your wallet, you can view them in your wallet under the ‘Portfolio’ tab. Congrats, now you’re a proud Runes owner!
This section was last updated Mar 19, 2025. See today's top rune tokens here.
The Runes ecosystem is expanding rapidly. Below is a snapshot of the most popular Runes tokens. DOG•GO•TO•THE•MOON continues to be the top Rune, but we have some newcomers and some previously popular Runes returning to the top five.
Previous top Runes.
Previous snapshots are below
Runes – A new fungible token standard that is set to launch on Bitcoin. Developers, or etchers, will be able to launch their own Rune tokens that they can name, set terms to and manage.
Bitcoin Ecosystem – A network of technologies, participants and services that interact to support and facilitate the use of Bitcoin as a digital currency and financial system.
Burn – Permanently removing Runes from circulation by sending them to a place where they can’t be spent or recovered.
Cap – The maximum number of times a Rune can be minted. Once this limit is met, no more Runes can be made and the mint is closed. This limit is set by the Rune’s etcher at the time of creation.
Casey Rodarmor – A well-known developer responsible for the creation of Runes and Ordinals on Bitcoin.
Cenotaph – Runestones that are malformed; this can happen for a number of reasons. Cenotaphs can’t be minted and are burned.
Divisibility – How small a Rune can be divided; not all Runes can be divided the same. Runes with a divisibility of 0 can’t be divided, a unit with a divisibility of 2 means the smallest Rune amount is 0.01.
Etchers – The developers, or creators, of Rune tokens.
Etching – How Runes are created. This is similar to how it sounds – etching creates a Rune and sets its properties. These properties can’t be changed after etching.
Fungible Token – A token where each one is exactly like the others, so they can be easily swapped.
Lightning Compatibility – Runes will be compatible with the Lightning Network, which can allow Runes transactions to skip delays and high fees on the Bitcoin network.
Lightning Network – A separate layer on top of Bitcoin that can enable transactions that are faster and less expensive.
Minting Runes – The process of creating a new Rune token. This process makes the token unique and traceable, ensuring its authenticity and ownership within the Bitcoin ecosystem. Once the mint limit (which is set by the etcher) is reached, the mint closes and no more new tokens can be made, the ones that exist are the only ones that can be in circulation.
Minting Terms – Each mint has their own minting terms for when the mint starts and ends, created by the etcher of the token.
Names – Etchers have to name their Rune token within 28 characters with the letters A through Z. Etchers can also add a spacer to separate words, which shows as a bullet point in between words.
NFT - A non-fungible token, where each one is unique and can be uniquely identified.
Premine – The etcher of a Rune can give themselves units of the Rune token that is being created during the etching process.
Rune ID – A label that lists the block where a Rune was etched and the index of the etched transaction within that block. For example, a Rune minted in the 98th transaction in the 570th block is labeled as 570:98.
Rune Protocol – The underlying system that makes the operations behind Runes possible.
Runestones – Rune Protocol messages that can create, mint and transfer existing Runes from a transaction's input to its output.
Symbol – This is essentially what it sounds like – a symbol that is displayed after the quantity of a specific Rune. This symbol is decided by the etcher during the token’s conception. If a Rune is not assigned a symbol, the generic currency sign (¤) is used.
The Halving – An event that happens in the Bitcoin ecosystem about every four years, where Bitcoin miners’ rewards are slashed in half. This is done to control Bitcoin’s inflation, making sure that the total supply of Bitcoin will never exceed 21 million. Runes’ launch will coincide with this year’s halving.
Transferring Runes – When Runes are included in the inputs of a transaction, or when new Runes are generated through a premine or minting process, those runes move to the outputs of the same transaction. The way Runes are moved from inputs to outputs can be altered by the transaction's Runestone.
UTXO-based protocol – A system where each transaction starts by picking up pieces of Bitcoin that haven't been spent yet (like digital change) and uses them to create new outputs.
UTXOs – Unspent Transaction Outputs. These are basically digital assets that you have received but haven't spent yet.
We’re excited to see this new era ushered in for Bitcoin’s ecosystem. Magic Eden wants to make it easier for everyone to use NFTs – Runes is a part of that journey. We believe the future of BTC is on Magic Eden, and we hope you join us there.
When you’re ready to enter the world of Runes, the Magic Eden Runes marketplace is the best place to do so. Find all your favorite Runes tokens, see the top movers right now or discover something that you’re sure will make waves in the community, all in one place.
Connect your wallet to Magic Eden now to start exploring the world of Bitcoin Runes.
The Runes Protocol is based on Bitcoin’s UTXO model: they embed extra data into BTC transactions, setting them apart from other, regular transactions. Runes are created by etching, which means setting the parameters under which certain Runes exist, then minting and distributing them.
To get BTC Runes, you need to a marketplace like Magic Eden that supports Runes. There, you can browse all the listed Runes, filter them by size, popularity or number of holders or simply search using the search bar. Buy them in a few clicks by entering the amount you want and buying them in return for BTC.
As of March 2025, several wallets now support Runes, including the Magic Eden Wallet. Usually, you’ll want to find Web3 wallets supporting the Bitcoin ecosystem. These wallets let you store, send and receive your Runes tokens. In the case of the Magic Eden Wallet, you can also buy BTC for fiat directly from the wallet, so you can buy Runes on the Magic Eden marketplace quickly and easily.
The information provided on this website is provided for general educational purposes only and is in no way financial or investment advice. Certain information may have also been provided to us or prepared by third parties; these materials are provided for convenience and are not an endorsement by Magic Eden. Magic Eden is not liable for any errors, changes or amendments to such information, including any actions taken in reliance on such information.
