Rune

Bitcoin

April

when

Daily

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 <p class="paragraph">In less than a month following its launch on the Bitcoin (BTC) blockchain, the Bitcoin Runes protocol has seen a staggering 99% drop in daily <a rel="noopener noreferrer nofollow" title="etchings" href="https://thebittimes.com/tag/etchings.html">etchings</a>, with numbers plummeting from a peak of 23,061 to just 157.</p>
 <p class="paragraph">Launched on April 20 to coincide with Bitcoin’s fourth halving event, the Runes protocol initially had robust activity. However, recent data from <em>Dune Analytics</em> has highlighted a sharp decline, raising concerns about its sustainability and the impact on miners’ revenues.</p>
 <p class="paragraph">Launched less than 30 days ago, the Bitcoin Runes has recorded a massive decline in activity. According to data sourced from <em>Dune Analytics,</em> the number of new Runes etched daily has sharply fallen to below 250 for the past six days, culminating in only 157 <a rel="noopener noreferrer nofollow" title="etchings" href="https://thebittimes.com/tag/etchings.html">etchings</a> recorded on Monday.</p>
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 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="334" src="https://cdn.thebittimes.com/images/2024/05/14/7920adbf1117173e29aa585b390a1993.webp" alt class="wp-image-175884" srcset="https://cdn.thebittimes.com/images/2024/05/14/7920adbf1117173e29aa585b390a1993.webp 1024w, https://cdn.thebittimes.com/images/2024/05/14/7920adbf1117173e29aa585b390a1993.webp 300w, https://cdn.thebittimes.com/images/2024/05/14/7920adbf1117173e29aa585b390a1993.webp 768w, https://cdn.thebittimes.com/images/2024/05/14/7920adbf1117173e29aa585b390a1993.webp 1536w, https://cdn.thebittimes.com/images/2024/05/14/7920adbf1117173e29aa585b390a1993.webp 1828w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption"><em>Daily Runes etched and the Runes Fees. Source:Dune analytics</em> <br>
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 <p class="paragraph">This marks a significant downturn of 99% from the late April peak when 23,061 Runes were etched in a single day.&nbsp;</p>
 <p class="paragraph">The protocol, launched to coincide with Bitcoin’s fourth halving event, initially sparked excitement among cryptocurrency enthusiasts. It enabled the <a rel="noopener noreferrer nofollow" title="etching" href="https://thebittimes.com/tag/etching.html">etching</a> of memecoins, non-fungible tokens (NFTs), and multimedia content directly onto Bitcoin’s blockchain, heralding new utility for the network.</p>
 <p class="paragraph">In its first 10 days, the protocol issued more than 85,000 tokens and generated over $3 million in fees. At a time when the recent halving had reduced the block subsidy to 3.125 BTC (about $196,800 at current rates), the high volume of Runes transactions provided an essential boost to miners’ revenues.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="325" src="https://cdn.thebittimes.com/images/2024/05/14/bc56760eabdf28b31ecc69ea4b46823d.webp" alt class="wp-image-175885" srcset="https://cdn.thebittimes.com/images/2024/05/14/bc56760eabdf28b31ecc69ea4b46823d.webp 1024w, https://cdn.thebittimes.com/images/2024/05/14/bc56760eabdf28b31ecc69ea4b46823d.webp 300w, https://cdn.thebittimes.com/images/2024/05/14/bc56760eabdf28b31ecc69ea4b46823d.webp 768w, https://cdn.thebittimes.com/images/2024/05/14/bc56760eabdf28b31ecc69ea4b46823d.webp 1536w, https://cdn.thebittimes.com/images/2024/05/14/bc56760eabdf28b31ecc69ea4b46823d.webp 1823w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption"><em>Runes vs Other transaction and transaction fees on Bitcoin .Source: Dune analytics</em> <br>
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 <p class="paragraph">Initially, other fees on the blockchain accounted for only 22.7% of total fees. However, the situation has since changed dramatically, with other fees now holding a share of 78.9%, while Runes account for just 21.1%.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="563" src="https://cdn.thebittimes.com/images/2024/05/14/4b29c0be085ce08002e60e75af851793.webp" alt class="wp-image-175886" srcset="https://cdn.thebittimes.com/images/2024/05/14/4b29c0be085ce08002e60e75af851793.webp 1024w, https://cdn.thebittimes.com/images/2024/05/14/4b29c0be085ce08002e60e75af851793.webp 300w, https://cdn.thebittimes.com/images/2024/05/14/4b29c0be085ce08002e60e75af851793.webp 768w, https://cdn.thebittimes.com/images/2024/05/14/4b29c0be085ce08002e60e75af851793.webp 1508w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption"><em>Total miner revenue(BTC). Source: Glassnode</em> <br>
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 <p class="paragraph">Finbold retrieved data from Glassnode that confirms this shift. On May 11, miners’ revenue was 533.69 BTC, a significant decline from 1677.09 BTC on April 20, which can be linked to the decreasing activity in the Runes protocol.</p>
 <p class="paragraph">Over the past two weeks, all metrics—including fees, new Runes, and user activity—have dropped by more than 50%. Since May 1, only about 5,000 new Runes have been issued, generating just under $100,000 in fees.</p>
 <p class="paragraph">It’s worth noting that this downturn occurred amid a general market decline, characterized by falling Bitcoin prices and slow growth in alternative tokens, which may have contributed to a drop in sentiment towards novel technology.</p>
 <h2 class="wp-block-heading" id="h-market-context-and-future-prospects">Market context and future prospects</h2>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="682" src="https://cdn.thebittimes.com/images/2024/05/14/4b96e912d543b78cc640b36c565e56c5.webp" alt class="wp-image-175887" srcset="https://cdn.thebittimes.com/images/2024/05/14/4b96e912d543b78cc640b36c565e56c5.webp 1024w, https://cdn.thebittimes.com/images/2024/05/14/4b96e912d543b78cc640b36c565e56c5.webp 300w, https://cdn.thebittimes.com/images/2024/05/14/4b96e912d543b78cc640b36c565e56c5.webp 768w, https://cdn.thebittimes.com/images/2024/05/14/4b96e912d543b78cc640b36c565e56c5.webp 1192w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption"><em>Bitcoin’s On-chain activity. Source: Santiment</em> <br>
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 <p class="paragraph">The decrease in Runes activity is not isolated but correlates with broader market trends. Bitcoin’s network activity has hit a five-year low, according to <em>Santiment</em>, indicating reduced trader interest and potential market anxiety.&nbsp;</p>
 <p class="paragraph">Additionally, the general sentiment towards cryptocurrency innovations like spot Bitcoin ETFs has cooled, with trading volumes declining and some funds experiencing outflows.</p>
 <p class="paragraph">Despite these challenges, it’s premature to deem the Runes protocol a failure. According to <em>Rodarmor</em>, the inventor of Runes, speaking at a recent Ordinals event, new developments are underway that could invigorate the protocol.&nbsp;</p>
 <p class="paragraph">Furthermore, several Runes collections have already achieved notable market capitalizations in the millions, as per <em>Magic Eden</em>.</p>
 <p class="paragraph">As the market anticipates upcoming economic indicators such as the US Consumer Price Index and comments from Federal Reserve Chair <em>Jerome Powell</em>, the cryptocurrency sector remains vigilant.&nbsp;</p>
 <p class="paragraph">These economic factors could significantly influence both traditional and digital asset markets in the coming days.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/bitcoin-rune-etchings-plummet-by-99-what-s-behind-the-dramatic-fall-tbt88308.html">https://thebittimes.com/bitcoin-rune-etchings-plummet-by-99-what-s-behind-the-dramatic-fall-tbt88308.html</a></p>

Bitcoin Rune etchings plummet by 99%; What’s behind the dramatic fall?

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