- Bitcoin Runes has swiftly regained its leading position in daily transactions on the Bitcoin network, surpassing Bitcoin, Ordinals, and BRC-20 tokens.
- After its launch on April 20, coinciding with the fourth Bitcoin halving, Runes quickly accounted for the majority of Bitcoin network transactions.
- The increase in transactions linked to the Runes protocol has significantly boosted network fees, benefiting Bitcoin miners amid reduced earnings post-halving.
Bitcoin Runes, a protocol launched on April 20 to enhance the efficiency of BRC-20 tokens on the Bitcoin blockchain, has quickly climbed to the top of daily transactions on the Bitcoin network. According to data from Dune Analytics, Runes-related transactions accounted for the majority of the network’s activity shortly after its launch.
Rapid Ascendancy and Transaction Dynamics
The Runes protocol claimed an impressive 81.3% share of all Bitcoin network transactions by April 23, reducing the share of traditional Bitcoin transactions to 18.15%, with Ordinals and BRC-20 transactions lingering at a mere 0.1% each. This dominant position, however, saw a decline over the following nine days, dropping consistently until May 2.
Despite this brief downturn, Runes transactions began to recover from May 3, regaining a transaction share above 60% in the subsequent days. This resurgence underscores the significant influence and rapid adoption of the Runes protocol within the Bitcoin ecosystem.
Impact on Network Fees and Bitcoin Mining
The surge in Runes-related transactions has inadvertently led to an increase in network fees, which, while potentially burdening some users, has been a boon for Bitcoin miners. Over a span of just 16 days, the Runes protocol accumulated 2,253 BTC in transaction fees for the mining community. This increase in fees comes at a crucial time as Bitcoin miners face reduced earnings following the Bitcoin halving, with total daily revenue dropping to under $30 million.
To adapt to these new economic realities and maintain profitability, mining operations like Bitfarms are investing heavily in upgrading their technology. Bitfarms has allocated $240 million to overhaul its equipment, aiming to triple its hash rate to 21 exahashes per second. Furthermore, the firm has sold nearly all the Bitcoin it mined in the past two months to fund the expansion of its mining fleet.
