Runes protocol witnesses substantial activity decline post-launch, particularly on May 10th, with fewer new mints and wallet interactions.
Activity on the Runes protocol has decreased substantially since its first week of commerce. Compared to the preceding periods, there was a significant decrease in activity on May 10th, as very few new mints and wallets engaged with the protocol.
A Dune analytics dashboard compiled by Runes indicates a steady decline in the fee revenue for the protocol.
Even though Runes continues to generate fees amounting to hundreds of thousands of dollars per day on the Bitcoin blockchain, the cumulative fees have only surpassed $1 million twice in the past twelve days, suggesting a substantial decline.
Runes, a novel Bitcoin token standard, enables users to create blockchain-based fungible tokens. Casey Rodarmor, the individual responsible for developing Ordinals, which facilitated Bitcoin nonfungible tokens, authored them.
Three weeks have passed since the Runes protocol went live, coinciding with the most recent Bitcoin halving event on April 19. The introduction of Runes incited a fervor among investors, which resulted in an unprecedented increase in transaction fees and a windfall of more than $135 million for Bitcoin miners.
According to data from Dune Analytics, the preponderance of Bitcoin network transactions were associated with Runes until April 24. The transaction share of Runes peaked at 81.3% on April 23, causing Bitcoin’s share to decline to 18.15%; Ordinals and BRC-20 transactions each recorded a 0.1% share.
Until May 2, Rune’s transactions steadily declined over nine days. On May 3rd, Runes initiated the process of recuperation. Runes restored its transaction share to over 60% on May 4 and 5.
The mining community embraced the fee increase in response to the substantial decline in earnings that ensued after the Bitcoin halving. Nevertheless, the daily revenue of Bitcoin processors decreased to less than $30 million in May.
Similar to Ordinals, Runes provides a more streamlined tokenization solution than BRC20 by enabling access to novel token standards on the Bitcoin blockchain. Memecoin trading on Bitcoin, which recently processed its one billionth transaction, has increased significantly as a result.
Runes, according to data from Magic Eden, has already attained substantial success, with several Rune collections commanding market capitalizations in the hundreds of millions of dollars. In contrast, numerous platforms need help in achieving initial traction.
Furthermore, during an Ordinals event in Hong Kong, Casey Rodarmor recently alluded to a groundbreaking audioreactive generative art endeavor, demonstrating the platform’s potential even further.
