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Runes Protocol Sees Declining Activity and Fee Revenue Amidst Fading Interest

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Runes Protocol Sees Declining Activity and Fee Revenue Amidst Fading Interest

  • The fee revenue for the protocol has been falling consistently, as per Dune analytics.
  • In the last twelve days, the total fees have only crossed $1 million twice.

Since its first week of trading, the Runes protocol’s activity has reduced substantially. Fewer new mints and wallets interacted with the protocol on May 10th compared to earlier times, indicating a significant drop in activity.

Users can create fungible tokens on the blockchain using Runes, a new standard for Bitcoin (BTC) tokens. They were created by Casey Rodarmor, who also developed Ordinals, which allowed Bitcoin NFTs.

Fading Interest

The fee revenue for the protocol has been falling consistently, according to a Dune analytics dashboard. While Runes continues to generate a substantial amount of money every day from Bitcoin blockchain fees, there has been a clear declining trend in the last twelve days, as the total fees have only crossed $1 million twice.

Three weeks have passed since the Runes protocol first appeared on April 19, coinciding with the most recent Bitcoin halving event. With the release of Runes came a stampede of investors, which in turn caused a spike in transaction costs and a bonanza for Bitcoin miners—more than $135 million in fees collected in the first week alone—setting a new record.

According to data compiled by Dune Analytics, the bulk of Bitcoin transactions up to April 24th were associated with Runes. With 81.3% of all transactions on April 23, Runes pushed Bitcoin’s share to 18.15%, while Ordinals and BRC-20 each accounted for 0.1%. 

The next nine days, up to May 2, saw a steady decline in runes transactions. However, Runes’ transaction share surpassed 60% on May 4 and 5. The crypto market has been facing severe volatility lately. At the time of writing, Bitcoin is trading at $61,093, down 0.10% in the last 24 hours as per data from CMC.

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