Runes Protocol Witnesses Activity Slump Post-Launch, Yet Hints at Potential Upswing
Summary:
The Runes protocol, a new Bitcoin token model, has experienced a significant decline in activity since its launch three weeks ago. Data showed a consistent drop in its revenue despite initially fuelling a surge in transaction fees that led to record-breaking income for Bitcoin miners. However, its creator, Casey Rodarmor, hinted at the platform's potential, teasing a new audioreactive generative art project during an event. Despite an initial decline in transactions, Runes is now witnessing a resurgence, and several of its collections boast market caps in the hundreds of millions of dollars.
In the first week since its launch, the Runes protocol witnessed a significant drop in action. On the 10th of May, a notable decrease in active engagement occurred, demonstrating a dwindling number of new creations and wallets interacting with the protocol as compared to earlier stages. As reported by a Dune analytics dashboard curated by Runes Is, the protocol's fee revenue has consistently fallen. Even though Runes still manages to pull in hundreds of thousands of dollars in daily Bitcoin blockchain fees, it has only exceeded $1 million twice in the past twelve days, marking a notable contraction.
Runes, a novel Bitcoin (BTC) token model, gives users the capability to generate interchangeable tokens on the blockchain. The mind behind its creation is Casey Rodarmor, also recognized as the founder of Ordinals, the pioneer of Bitcoin's nonfungible tokens.
Since starting operations three weeks ago on April 19th, with the occurrence synced with Bitcoin's latest halving event, the Runes protocol has been active. Its launch sparked an investor craze and triggered a hike in transaction fees; this led to Bitcoin miners netting a record-breaking profit exceeding $135 million in the first week alone.
Dune Analytics data reveals that up until April 24th, transactions related to Runes made up the majority of Bitcoin network transactions. Runes held the dominant transaction stake of 81.3% on April 23rd, which moved Bitcoin (BTC) transactions to a minor 18.15% share, while transactions related to Ordinals and BRC-20 were at a minimal 0.1% each. Over the succeeding nine days, Runes transactions consistently fell until May 2nd. However, they started to pick up from May 3rd and managed to recapture a transaction share above 60% on May 4th and 5th.
With the fall in their income following the Bitcoin halving, the mining community saw the fee increase as a welcome development. Nonetheless, the total revenue for Bitcoin miners dropped below the $30 million daily threshold in May.
The Runes protocol, similar to Ordinals, offers new token models on Bitcoin's blockchain, thus providing a more effective tokenization solution than BRC20. This has boosted Bitcoin's meme coin trading, which recently hit its one billionth transaction.
While many platforms struggle to gain initial momentum, Runes has already made a significant stride; several Runes collections have a market cap in the hundreds of millions of dollars, as per Magic Eden data. Furthermore, Casey Rodarmor recently hinted at a novel audioreactive generative art project at an Ordinals event in Hong Kong, demonstrating the platform's immense potential.
Published At
5/12/2024 1:02:34 PM
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