Bitcoin Runes, a leading non-fungible token (NFT) protocol launched in April, has recorded an impressive 15.6 million transactions in just four months, generating $162.4 million in fees. This surge highlights the protocol’s significant impact on the market.
Rapid Growth in Transaction Volume
According to data from Dune Analytics, Bitcoin Runes experienced its highest transaction volume within the first two months of its launch, frequently exceeding 300,000 daily transactions. On April 23, the protocol reached a peak, with NFT investors completing over one million transactions, including minting, etching, transfers, and edicts. This activity accounted for a staggering 81.3% of the total Bitcoin network bandwidth that day.
Decline in Activity and Market Shifts
However, after this initial surge, daily transactions on the Runes protocol have declined, averaging around 50,000 per day over the past two months. Bitcoin has gradually regained its dominance on the network, with Bitcoin transactions now representing about 90% of network activity since mid-July. The remaining 10% of the activity is split between Ordinals, BRC-20 tokens, and Runes.
The Rise of Bitcoin Inscriptions
The Runes protocol was introduced as an advanced alternative to Bitcoin Ordinals and a competitor to BRC-20 tokens. It quickly gained favor among investors, often surpassing BRC-20 in daily transaction share. Over the four-month period, Runes outperformed BRC-20 on most days, with BRC-20 only exceeding Runes on 13 occasions.
Out of the 15.6 million Runes transactions recorded, more than nine million were for mints, while edicts and etching accounted for 6.5 million and 91,500 transactions, respectively.
Market Opportunities and Future Outlook
Pseudonymous decentralized finance researcher Ignas has suggested that the real market potential for Bitcoin Runes might unfold in the coming months. He highlighted that tokens like Runestone, RSIC, and PUPS are gaining momentum, with holders anticipating potential Rune token airdrops. However, he cautioned that the current enthusiasm might cool down, similar to the NFT market post-JPEG reveal.
Additionally, Bitcoin layer-2 network Stacks is preparing to launch a trading solution that will support Runes, BRC-20 tokens, and Ordinals inscriptions, potentially driving further growth and interest in these assets.
