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The Subsequent Phase of Tokenmania Post Bitcoin Halving – CoinFactiva Analytics

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The 840,000th block of Bitcoin marked not only the halving but also the implementation of the Runes protocol, heralding the second season of meme coin hunting. Instead of declining, miners faced a record surge in income.

Network Hashrate

On April 20th, the block reward was halved from 6.25 BTC to 3.125 BTC, while the network hashrate reached a record 655 EH/s (as of 25.04.2024 the network hashrate (7D) = 643.55 EH/s)

In anticipation, miners dusted off even low-profit ASICs. The expected increase in transaction processing income was the key. Due to limited block capacity, users are forced to pay higher fees for faster transaction processing. The situation becomes especially acute when competition intensifies for a specific block.

Miner Transaction Fees

On April 20th, the average transaction fee soared to a record $128. Miner transaction fee income for just the 840,000th block reached 37.6 BTC or $2.4 million, exceeding the block reward ratio by over 10 to 1. In total, transaction fees that day amounted to $78,3 million, compared to just $3,2 million in Ethereum.

Runes Protocol

The excitement was once again related to meme coins: on the same block, the Runes protocol was launched to replace BRC-20. BRC-20 (similar to ERC-20 in Ethereum) are coins minted within the network and transferred through Satoshi numbering.

The problem with BRC-20 lies in the significant growth of UTXOs (Unspent Transaction Outputs), which the protocol’s creator, Casey Rodarmor, referred to as spam. He developed the Runes protocol, which eliminates this drawback.

Since meme coins do not carry useful payloads, one of the key attributes is the starting block. This explains the high competition and $2.4 million in paid fees. However, interest in minting remains, with 6,843 Runes tokens already issued. There are 435,000 transactions daily, accounting for 69% of the total.

The second phase of tokenmania has not affected Bitcoin’s value and position. It’s likely that interest in Runes will diminish closer to May, as happened with Ordinals and BRC-20, and fees will decrease. Miners will have to adapt to reduced overall income.


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