- Bitcoin Runes protocol caused an initial surge in Bitcoin transactions, exceeding 50% at its peak
- Runes transactions have plummeted by 84% from their all-time high since the initial hype
- Runes, along with Ordinals and BRC-20, marked a record high of 926,000 daily Bitcoin transactions
The Bitcoin Runes protocol caused a surge in Bitcoin transactions when it first launched, but the hype has since faded significantly.
Launch of Bitcoin Runes
The Bitcoin Runes protocol launched on April 20, coinciding with the fourth Bitcoin halving event. The hype around the halving saw Bitcoin transaction volume shoot up, with mining revenue exceeding $100 million for the first time and recording an all-time high daily earnings of $107.7 million. Users spent $24 million in fees to inscribe runes and rare satoshis on the first halving block.
Peak Hype
In the days after launch, transactions from the Runes protocol accounted for over 50% of all Bitcoin transactions, peaking on April 23 when they represented 81.3% of bandwidth. The hype picked up again on the weekends of May 4-6.
Declining Transactions
However, Runes transactions have trended down since peaking in late April. As of May 22, Runes represented just 12.7% of Bitcoin transactions, much higher than Bitcoin Ordinals at 0.7% and BRC-20 at 1.5%. Overall, Runes transactions are down by over 84% since their all-time high.
Future Potential
While the initial investor hype has faded, the real market potential for the Runes protocol may emerge in the months ahead. The protocol demonstrates the value of Bitcoin’s block space as the most decentralized and robust blockchain network. There are likely to be many future use cases and value derived from Bitcoin’s inherent qualities.
