Runes on Bitcoin Network See Significant Daily Creation Drop; Still Retain Popularity
Summary:
The daily creation of Runes, a new type of token on the Bitcoin network, has dropped below 250 this week, marking a 99% decrease from late April. Runes were launched on April 20th during Bitcoin's fourth halving event, offering a new revenue stream for Bitcoin miners. Despite the recent reduction, Runes remain popular in terms of transaction volume, primarily on marketplaces like Magic Eden, OKX, Ordinals Wallet, and UniSat. The creator of Ordinals, Casey Rodarmor, clarified that Runes are a tool for enjoyment on the Bitcoin network, rather than a serious financial tool.
In the past six days, the daily count of new Runes created on the Bitcoin network has slipped below 250. On Monday, only 157 Runes were created, indicating a 99% decrease from the high recorded in late April. This dip follows a successful period that started shortly after the system's inception, during which daily Rune creation numbered an average of 14,700 between April 26-30. A record 23,061 Runes were created on April 26 alone, as per data from a Dune Analytics dashboard developed by RUNES.IS.
Introduced during the fourth Bitcoin halving block on April 20, the Runes token stimulates engagement from enthusiasts of memecoin and nonfungible tokens, allowing them to embed their favorite images, artworks, audio, and videos on the Bitcoin network.
Initially, Rune creation acted as a supplementary income stream for Bitcoin miners who felt the effects of the halving, which reduced the block subsidy to 3.125 Bitcoin (equivalent to $196,800 with current rates). However, the revenue from the 157 Runes created on May 13, only amounted to $3,835 in transaction fees for Bitcoin miners, a significant decrease from the income reported in late April. Since its introduction on April 20, Runes has generated $4.5 million in transaction fees for Bitcoin miners, with a daily average of roughly $189,000.
In total, over 91,200 Runes have been embedded on the Bitcoin network up till now. Although the quantity has fallen, Rune transactions still form the base of the transactions executed in May, mainly on platforms such as Magic Eden, OKX, the Ordinals Wallet, and UniSat.
Casey Rodarmor, the creator of Ordinals, launched Runes aiming to utilize blockspace more efficiently than its main competitor, BRC-20s, as per Binance Research. Unlike BRC-20s, Runes works with Bitcoin's unspent transaction output (UTXO) model, which can hold balances of variable fungible tokens including Runes.
Despite its growing popularity, Rodarmor stated in a recent interview that Runes does not represent the "future of finance," instead, it is a tool for degens to enjoy on the Bitcoin network.
Published At
5/14/2024 6:34:11 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.