As an experienced financial analyst, I’ve closely monitored the Bitcoin ecosystem and have taken note of the significant drop in activity on the Runes protocol since May 10. Although the protocol had a promising start, attracting over half of all transactions recorded in the ecosystem after the 2024 halving event, it has faced a decline in engagement due to various factors.
The Bitcoin Runes protocol, launched on April 19 as a decentralized finance (DeFi) initiative for generating fungible tokens on the Bitcoin network, has experienced a noticeable decline in usage despite an encouraging start.
To begin with, on April 24, there was a significant increase in activity on the Bitcoin protocol. This accounted for approximately 57% of all transactions within the ecosystem following the 2024 Bitcoin halving. The groundbreaking debut of this protocol resulted in high fees for Bitcoin miners due to intense competition among investors for block space during the halving event.
During its inaugural week, Runes recorded around $107 million in daily transactions and over $135 million in Bitcoin transactions every week. Yet, following several weeks of capturing investor interest, the excitement surrounding this protocol seems to have diminished due to the ongoing market slump.
Runes Protocol Faces Decline since May 10
Based on information from crypto analysis firm Dune’s on-chain data, the activity on the Runes protocol has noticeably decreased, reaching a record low last seen on May 10. Potential causes for this decline could include fewer new mints and a decrease in newly active wallets engaging with the protocol since its launch in April, ultimately leading to reduced fee generation.
As a researcher studying the Bitcoin ecosystem, I’ve noticed that the protocol’s engagement levels have remained low since then, resulting in a decreased market share.
As a crypto investor, I’ve been closely monitoring the data from Dune regarding Runes’ transaction fees. Despite consistently recording thousands of transactions each day, the protocol has faced challenges in reaching the $1 million milestone. In fact, over the past 12 days, it has only managed to exceed this amount twice.
As a crypto investor closely monitoring the Runes market, I’ve noticed some intriguing trends in the data. Specifically, there has been a drastic reduction in the total number of Runes minted. From an impressive 23,061 on April 26, this figure has dropped down to a mere 62 in the current month. Additionally, the fees earned from transacting with Runes have taken a steep dive. The peak earning of $321,263 on April 26 has been replaced by a meager $970 in the present day.
Prior to May 5, the Bitcoin network saw less than 30% of its total transaction volume from the protocol in question. On the other hand, the Runes network experienced significantly higher usage during the month of April. Specifically, on the 20th and 23rd of that month, the protocol accounted for 77% and 69% of the network’s overall transaction volume, respectively.
Runes NFT Collections Hit Over $100M Market Caps
Although the level of activity on the Runes network has dropped recently, the protocol remains notable. Several NFT collections on this platform have already achieved market capitalizations over $100 million.
Based on Magic Eden’s statistics, the market capitalizations of certain Runes collections, including DOG•GO•TO•THE•MOON, PUBS.WORLD.PEACE, and EPIC.EPIC.EPIC, are reportedly $2.44 billion, $171.60 million, and $37.78 million respectively.
At the Asia event on May 11, software engineer Casey Rodarmor, known for creating Runes and Bitcoin Ordinals, shared some intriguing news about a new NFT (Non-Fungible Token) project he’s working on. Instead of using the term “hinted,” we could say that he announced in a subtle way or gave a sneak peek into his latest endeavor. As for paraphrasing his project, we could describe it as an audiovisual art creation that generates unique pieces in response to sound.
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2024-05-13 13:46