Bitcoin Runes protocol sees sharp decline in popularity
None of the protocols operating on the Bitcoin network have been able to match the original Bitcoin in terms of the total number of daily transactions for an extended period, according to new data.
Since its launch on April 20, Runes has consistently consumed the highest bandwidth on the Bitcoin network for several days. The protocol accounted for more than 50% of transactions on 13 separate days but has not reached this level in over four weeks.
Share of transactions over the Bitcoin blockchain. Source: RunesThe rise and fall of the Bitcoin Runes protocol
Amid the fading hype of Runes, Bitcoin ( BTC ) reclaimed its dominance in terms of bandwidth allocation on the Bitcoin network.
Bitcoin currently represents 90% of all transactions over the blockchain as shown in the above graph. Runes still maintains its dominance among the other Bitcoin protocols. On July 17, Runes represented 7.9% of all transactions, while BRC-20 and Ordinals claimed 1.1% and 0.4%, respectively.
Over the past month, Runes’ share of transactions over the Bitcoin network has fallen under 9% on average, signaling a decreasing interest among investors interested in Bitcoin-based non-fungible tokens (NFTs).
After its launch on April 20, Runes consistently recorded the highest number of daily transactions during the initial weeks. In the process, it helped Bitcoin miners earn more than 2,540 BTC to date in three months.
Runes earned 2,500 BTC in fees out of the lot within two months of launch . In contrast, the protocol earned just 41 BTC in fees the following month, showcasing a drastic change in investor sentiment.
In this regard, pseudonymous decentralized finance (DeFi) researcher Ignas believes that Bitcoin Runes’ “ real opportunity" will come after the first wave of investor hype . They said on X:
“Runestone, RSIC, and PUPS are already pumping, promising holders shiny new Rune token airdrops. And FOMO threads keep coming. But, like the NFT frenzy post-JPEG reveal, the market could soon cool off.”
Related: Did Bitcoin Runes already peak?
The unshakable dominance of Bitcoin
Despite the stiff competition, Rich Rines, a Core DAO contributor building Bitcoin DeFi solutions, believes that Bitcoin Runes and BRC-20 tokens may only be a stepping stone in the evolution of Bitcoin-native decentralized finance (DeFi).
“[Bitcoin] started as a peer-to-peer electronic cash system then morphed more into a store value and now protects $1.5 trillion of wealth. We’ve seen over the last one and a half years this desire to add more utility to the underlying Bitcoin through the rise of Ordinals, token protocols like BRC 20s and now Runes,” he added, speaking about the Bitcoin evolution.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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