'Drastic Transaction Drop in New Bitcoin Standard 'Runes' Impacts Miner Revenues'
Summary:
The newly established token standard on the Bitcoin blockchain, Runes, experienced a significant dip of 88% in its daily average transaction count. The decrease greatly impacted the fees of Bitcoin miners still grappling with the aftermath of the last halving event. The decline in network fees, coupled with Bitcoin's price drop, caused Bitcoin's hash price to fall drastically. Additionally, Bitcoin miner reserves fell to 1.90 million Bitcoin on June 19, marking the lowest level in over 14 years.
Recently, the daily average transaction count for Runes, a novel token standard on the Bitcoin blockchain, took a 88% nosedive from its peak in the current month. Between June 22-28, the daily transactions of Runes averaged at 37,820, indicating a close to 90% decline from the daily average of 331,040 noted between June 9-15. The data was provided by Dune Analytics and collated from Crypto Koryo. The data set includes 23,238 transactions executed on June 24, marking the lowest figure since Runes was initiated during Bitcoin's fourth halving event on April 20.
Transactions related to Runes made up between 4.9-11.1% of all Bitcoin transactions within the past seven days, as per the Dune Analytics insights. This significant decrease in Runes transactions greatly impacted the fees collected by Bitcoin miners who are still reeling from the previous halving event. Over six consecutive days, Runes contributed less than 2 Bitcoin in terms of miner fees, showcasing a colossal drop from its apex of 884 Bitcoin on April 24.
Moreover, fees from Ordinals inscriptions and BRC-20 tokens noted an even more marked downturn in the same duration. Initially, these protocols represented a fresh income source for Bitcoin miners, who would typically depend on plain vanilla peer-to-peer Bitcoin transfers in exchange for network fees.
For a few days after the halving event on April 20, these fees from Runes and Ordinals could counterbalance the 50% reduction in block subsidy. Beyond that, the trading volume became highly volatile. Casey Rodarmor, the pioneer of Ordinals, launched Runes on April 20 as an improved method for generating new tokens on the Bitcoin network, compared to the BRC-20 token standard and other alternatives.
The decline in network fees, along with Bitcoin's price, led to the Bitcoin hash price, which is a fundamental measure for miner revenue, plunging towards its lowest level ever. On another note, Bitcoin miner reserves drastically fell to 1.90 million Bitcoin on June 19, implying the lowest figure in over 14 years when expressed in Bitcoin terms.
Published At
6/30/2024 6:56:49 AM
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