The Bitcoin Runes protocol has experienced a dramatic decline in transaction volume, falling over 88% from its peak levels this month. Recent data from Dune Analytics, provided by Crypto Koryo, indicates that the daily average of Runes transactions dropped from 331,040 in mid-June to just 37,820 by the end of the month. This significant decrease marks the lowest point since Runes' launch on April 20 during Bitcoin's fourth halving event.
On June 24, the network saw only 23,238 transactions, the lowest since the protocol's inception. Over the last week, Runes transactions accounted for merely 4.9-11.1% of all Bitcoin transactions, substantially impacting Bitcoin miners' revenue.
Bitcoin miners earned less than 2 BTC from Runes transactions over the past six days, a stark contrast to the record 884 BTC generated on April 24. This decline has severely affected miners, who had previously benefited from the introduction of Runes and other protocols like Ordinals and BRC-20 tokens. These new protocols were initially expected to provide a steady stream of transaction fees, especially crucial after the halving event reduced block subsidies.
However, the anticipated steady revenue stream has proved unpredictable. Fees from Runes, Ordinals, and BRC-20 tokens have failed to sustain the levels needed to offset the subsidy reduction. The fluctuating transaction volumes have added to the volatility, impacting miners' financial stability.
Casey Rodarmor, the inventor of Ordinals, launched Runes as a more efficient token creation method on the Bitcoin network compared to the existing BRC-20 token standard. Despite its potential, the rapid decline in transactions has raised concerns about its long-term viability and the sustainability of miner revenue models relying on these new protocols.
The broader impact on the Bitcoin network is significant. The decrease in Runes transactions, alongside lower fees from other protocols, has led to a drop in Bitcoin’s hash price, a key metric for miner revenue. This situation is further exacerbated by the recent fall in Bitcoin prices and miner reserves, which hit a 14-year low of 1.90 million BTC on June 19.
As the cryptocurrency market navigates these challenges, the future of protocols like Runes remains uncertain. The industry must address the volatility in transaction volumes and revenue streams to ensure the stability and sustainability of the Bitcoin mining ecosystem.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
