Bitcoin's New Token Standard Runes Sees Dramatic Drop in Daily Transactions
Summary:
Runes, a new Bitcoin blockchain token standard, has seen a significant drop in daily transaction averages, contributing to a substantial impact on Bitcoin miners' fees. The launch of Runes was intended as a fresh revenue source for Bitcoin miners but has since been inconsistent, with values decreasing drastically. The dip in network fees and Bitcoin's price fall has led to the lowest recorded reserves of Bitcoin miners and a decline to almost the lowest level in Bitcoin's hash price.
The daily average transactions of Runes, a novel token standard on Bitcoin's blockchain, have experienced a significant dip of over 88% from its monthly high. Between June 22-28, daily transactions of Runes averaged at 37,820 - a dramatic decrease of nearly 90% from the average of 331,040 seen from June 9-15, as per the data from Crypto Koryo via Dune Analytics. This figure includes the 23,238 transactions recorded on June 24, which represent the lowest number since the introduction of the protocol on April 20 during Bitcoin's fourth halving event.
Throughout the past week, the Runes transactions only comprised between 4.9% to 11.1% of all Bitcoin's transactions. The considerable drop in the Runes transactions significantly impacted the fees of Bitcoin (BTC) miners who are still grappling with the aftermath of the recent halving event. In the last six consecutive days, Runes has generated fewer than 2 Bitcoin in miner fees - a significant fall from the historic 884 Bitcoin recorded on April 24.
Comparatively, the so-called Ordinals inscriptions and BRC-20 tokens have contributed even less in the same period. Initially hyped as a fresh revenue source for Bitcoin miners who traditionally depended on standard peer-to-peer transactions for network fees, the revenues from Runes and Ordinals partially compensated for the 50% cut in the block subsidy in the days following the April 20 halving event. However, their trading volume has been largely erratic since then.
Introduced by Casey Rodarmor, the creator of Ordinals, on April 20, Runes was promoted as a more resource-efficient way to generate new tokens on the Bitcoin network compared to the traditional BRC-20 token standard and alternative methods. The decline in network fees and Bitcoin's ongoing price fall have led to a slump in Bitcoin's hash price - a key index of miner revenue - to almost the lowest level in the network's history. Simultaneously, Bitcoin miner reserves plunged to a 14-year low of 1.90 million Bitcoin on June 19.
Published At
6/30/2024 6:56:00 AM
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