Bitcoin Runes Regain Dominance in Daily Transactions on the Bitcoin Network

Bitcoin Runes Regain Dominance in Daily Transactions on the Bitcoin Network

Bitcoin Runes, a protocol launched on April 20, has surpassed the original Bitcoin, Ordinals, and BRC-20 tokens in terms of daily transactions on the Bitcoin network. The Runes protocol is an experimental standard for fungible tokens built on the Bitcoin blockchain, introduced to improve the efficiency of BRC-20 tokens.

On April 23, Runes achieved the highest transaction share at 81.3%, reducing Bitcoin’s transaction share to 18.15%; Ordinals and BRC-20 transactions reached 0.1% each. However, Runes transactions gradually declined over the following nine days until May 3. On May 4 and 5, it regained its trading share by over 60%. The increase in transactions benefits Bitcoin miners, even though it unintentionally leads to higher network fees. The Runes protocol provided 2,253 BTC in fees to the mining community in just 16 days.

Bitcoin miners welcomed the increase in fees as their earnings decreased significantly following the Bitcoin halving. In May, total revenue for Bitcoin miners dropped below $30 million per day. To maintain profitability, miners are upgrading their mining equipment to reduce operating costs and increase performance.

The rise of Bitcoin Runes in daily transactions highlights the evolving landscape of the Bitcoin network and the ongoing efforts of miners to adapt to changing market conditions and optimize their operations.