Bitcoin Runes Shaping DeFi Landscape with Over $163M in Transaction Fees
Summary:
The Bitcoin Runes protocol has collected over 2,500 BTC worth of transaction fees, indicating a surge in decentralized finance on the Bitcoin network. Bitcoin Runes are becoming the leading standard for issuing fungible tokens, surpassing BRC-20 tokens and Ordinals. The increase in transaction fees is providing substantial support for Bitcoin miners, especially following the halving event where Bitcoin block rewards were reduced.
In less than two months, Bitcoin Runes have gathered more than 2,500 Bitcoin (BTC), a sum derived from transaction fees, indicative of the expansion of decentralized finance (DeFi) within the Bitcoin network. Since its initiation, the Runes protocol, a novel mechanism for generating exchangeable tokens on the Bitcoin platform, has produced a total of 2,513 BTC in fees, equating to more than $163 million in terms of Dune data.
This achievement occurs merely two months following the introduction of the Runes protocol, synchronizing with the Bitcoin halving event in April 2024, thereby evidencing sustained fascination in Bitcoin-based DeFi, or BTCFi. Transaction fees accruing from systems such as Runes could offer substantial support to Bitcoin miners following the halving, in light of the Bitcoin block rewards downscaling from 6.25 BTC to 3.125 BTC per successfully extracted block.
Concerning BRC-20 tokens and Ordinals, Bitcoin Runes have proven to be superior, fast becoming the accepted norm for the issuance of swapable tokens on the pioneering blockchain network. In terms of transaction dispersion, transactions related to Runes represented 12.2%, while BRC-20 transactions accounted for 5%, and Ordinals inscriptions a mere 0.6% of total Bitcoin network transactions. As of June 17, regular BTC transactions still made up more than 82% of operations, based on Dune's data.
Speaking of daily transaction volume, there were 9,567 Runes-linked transactions, compared to 3,938 BRC-20 transactions, and just 474 Ordinals-related transactions. Regular Bitcoin transactions numbered at 64,620. Since its 2024 inception, Runes has consistently outperformed BRC-20 tokens in respect of on-chain operations.
According to Nazar Khan, Co-founder and COO of TeraWulf, the surge in transaction fees resulting from Bitcoin Runes potentially offers a much-needed boost to Bitcoin miners. Khan expressed that on account of Runes, transaction fees saw a significant increase, resulting in a bump in hash price in the initial 24-30 hours post halving. Even though transaction fees have since lowered, they're still considerably elevated as compared to the average fees in 2023.
In relation to the remainder of the Bitcoin block reward, which is an unwavering issuance, the transaction fees represent a fluctuating factor for Bitcoin miners, as per Khan.
Published At
6/17/2024 4:52:13 PM
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