Runes Tx daily fees fall 98.4% to $1.03 million after halving – Glassnode

According to Glassnode data, Runes transactions generated $117 million in accumulated Bitcoin network fee revenue after the halving, with $62.4 million accumulated on the day of the halving .

However, this surge proved short-lived, with recent data revealing that on April 28, Runes transactions only brought in $1.03 million in fees.

Rune dominates the Bitcoin network after the halving

On April 20, the day of the halving, transaction fees on the Bitcoin network experienced a noticeable increase. This increase was mainly related to the implementation of the Runes protocol, which led to higher mining rates.

Rune transactions accounted for 57.7% share of all Bitcoin network transactions. Financials trailed behind with a share of 41.5%, while Ordinals and BRC-20 accounted for 0.5% and 0.2%, respectively.

This dominance persisted through the weekend in the middle, with Runes maintaining the majority of network activity. On April 21, Runes transactions accounted for 51.6% of total transactions.

However, on April 22, this dominance began to decline, dropping to 42.5%, while Bitcoin financial transactions claimed a larger share, accounting for 56.5% of the total transactions processed that day .

following the #Bitcoin Halving, Rune’s transactions have amassed a total of $117 million in commission income, with a staggering $62.4 million raised on the day of the halving.

However, a steep decline in revenue can be seen with Rune TX’s current rates residing at a value of $1.03 million. pic.twitter.com/RpDnn4r88n

— glassnode (@glassnode) April 29, 2024

However, the situation has changed since then, with transaction fees decreasing. Medium priority transactions are priced at approximately $8.48, while high priority transactions are priced at approximately $9.321.

This represents a 75% decrease in fees compared to the immediate aftermath of the halving, which increased fees to $146 for a medium priority transaction and $170 for a high priority transaction.

Long term benefits

According to Bitcoin researcher Jade Ardinals, the increased load on the network was mainly caused by the minting. Ardinals explained that speculation around Runes led to an increase in minting activities, creating “artificial” tension in the Bitcoin block space.

Analysts expect this pressure to ease over time. However, they maintain that Runes will continue to attract more developers to Bitcoin.

Rune tokens have already captured a large portion of Bitcoin’s on-chain activity. According to Crypto Koryo’s Dune dashboard, on April 25, Runes tokens accounted for 45% of all Bitcoin transactions.

Casey Rodarmor developed Bitcoin Runes to improve upon the BRC-20 standard, which is known for its expensive creation and management of tokens on the blockchain due to its UTXO proliferation. Bitcoin faces challenges with the accumulation of unspent transaction outputs (UTXO), which strain the network and cause performance issues.

Runes allows users to perform more efficient transactions and create better-optimized tokens in Bitcoin by leveraging its UTXO format.

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