Bitcoin Runes Regains Lead in Bitcoin Network Transactions Amid Miners Upgrading Tech
Summary:
Bitcoin Runes has reclaimed its top position within Bitcoin's network, exceeding Bitcoin, Ordinals, and BRC-20 in terms of daily transactions. This coincided with the fourth Bitcoin halving, aiming to enhance BRC-20. Despite putting a strain on the network by inadvertently increasing fees, this situation is advantageous for Bitcoin miners who saw a decline in revenue after Bitcoin's halving. To remain profitable, miners, such as Bitcoin mining firm Bitfarms, are upgrading their technology, reducing costs and increasing productivity.
Bitcoin Runes has once again taken the leading spot within Bitcoin's network, overtaking Bitcoin (BTC), Ordinals, and BRC-20 in daily transactions. The Runes protocol was introduced on April 20, coinciding with Bitcoin's fourth halving event, with the goal of enhancing functionality within BRC-20, a novel standard for interchangeable tokens in the Bitcoin blockchain. Data from Dune Analytics indicates that most Bitcoin network transactions were related to Runes until April 24.
On April 23, Runes boasted the most significant share of transactions at 81.3%, reducing BTC's to 18.15% while Ordinals and BRC-20 each claimed 0.1%. However, Runes' transaction count consistently declined over nine days until March 2. As indicated above, Runes began its resurgence on March 3 and by March 4 and 5, it had recaptured over 60% of total transactions.
Despite the fact that a sudden surge in transactions can lead to increased network fees, it often benefits Bitcoin miners. The introduction of the Runes protocol led to the generation of 2,253 BTC in mining community fees within 16 days.
Bitcoin miners, who saw a substantial decrease in income following the Bitcoin halving event in May, welcome increasing fees. Revenue totals for Bitcoin miners plummeted to less than $30 million daily in May.
To remain profitable, miners are upgrading to more efficient mining technology to lower operational expenses and increase performance and profitability. Bitcoin mining company Bitfarms allocated $240 million for its upgrade, which would triple its hash rate to 21 exahashes per second (EH/s). Furthermore, Bitfarms liquidated nearly all the Bitcoin it had mined in the past two months as it continues to reinvest in the expansion of its mining fleet.
Published At
5/6/2024 1:49:05 PM
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