Runes Protocol activity has decreased significantly since the first week of trading. On May 10
Runes Protocol activity has decreased significantly since the first week of trading. On May 10 specifically, there was a noticeable decline in activity, with very few new mints and wallets interacting with the protocol compared to previous periods.
According to a Dune analytics dashboard compiled by Runes Is, protocol fee revenue has been steadily declining. Although Runes is still earning hundreds of thousands of dollars per day in fees on the Bitcoin blockchain, total fees have only exceeded $1 million on two occasions in the past twelve days, indicating a significant downward trend.
Runes is a new Bitcoin (BTC) token standard that allows users to create fungible tokens on the blockchain. It was created by Casey Rodarmor, creator of Ordinals, which enabled Bitcoin’s non-fungible tokens.
The Runes protocol has been running for three weeks since its debut on April 19, which coincided with the recent Bitcoin halving event. The launch of Runes sparked a frenzy among investors, leading to a surge in transaction fees and a record windfall for Bitcoin miners, with more than $135 million in fees generated during the first week alone.
Data from Dune Analytics shows that as of April 24, rune-related transactions made up the majority of transactions on the Bitcoin network. On April 23, Runes had the highest share of transactions, at 81.3%, pushing Bitcoin (BTC) transaction share down to 18.15%, with Ordinals and BRC-20 transactions at 0.1% each.
Rune transactions steadily diminished over the next nine days until May 2. As of May 3, the runes began to recover. On May 4 and 5, Runes regained its share of transactions above 60%.
Related: Bitcoin ordinal numbers, runes are the key to solving the problem of mining support: ViaBTC
The higher fees were welcomed by the mining community as their profits dropped significantly after the Bitcoin halving. However, in May, total revenues for Bitcoin miners dropped to less than $30 million per day.
Runes, such as Ordinals, open up new token standards on the Bitcoin blockchain, providing a more efficient tokenization solution than BRC20. This has led to a surge in memecoin trading over Bitcoin, which recently processed its billionth transaction.
While many platforms face challenges gaining initial traction, Runes have already achieved significant success, with several Rune decks having a market value in the hundreds of millions of dollars, according to data from Magic Eden.
Additionally, Casey Rodarmor recently hinted at an innovative audio-reacting creative art project during the Ordinals event in Hong Kong, further showcasing the platform’s potential.
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