Rune protocol activity dropped significantly

Author: Amaka Nwaokocha, CoinTelegraph; Compiled by: Tao Zhu, Golden Finance

Rune Protocol activity has decreased significantly since the first week of trading. Activity dropped significantly on May 10, with very few new minters and new wallets interacting with the protocol.

According to the Dune Analytics dashboard, the protocol's fee revenue has steadily declined. While Runes still earns hundreds of thousands of dollars in fees per day on the Bitcoin blockchain, total fees have only exceeded $1 million twice in the past 12 days, showing a downward trend.

Runes is a new Bitcoin token standard that allows users to create fungible tokens on the blockchain, initiated by Ordinal creator Casey Rodarmor. Ordinals enable non-fungible tokens on Bitcoin.

The Runes protocol debuted on April 20, coinciding with the latest Bitcoin halving event. The launch of Runes sparked an investor frenzy that sent transaction fees soaring and led to a record windfall for Bitcoin miners, generating more than $135 million in fees in the first week alone.

Data from Dune Analytics shows that as of April 24, rune-related transactions accounted for the majority of transactions on the Bitcoin network. On April 23, Runes hit a highest transaction share of 81.3%, pushing Bitcoin transaction share to 18.15%, Ordinals and BRC-20 transactions The share is 0.1% each.

Rune trading continues to decrease over the next nine days until May 2nd. Starting from May 3, rune trading began to recover, and on May 4 and 5, rune trading share returned to more than 60%.

The mining industry welcomed the fee increase as their revenue plummeted following the Bitcoin halving. In May, total revenue for Bitcoin miners fell below $30 million per day.

Runes, like Ordinals, launches a new token standard on the Bitcoin blockchain. Bitcoin recently processed its billionth transaction.

According to data from Magic Eden, Rune has been a huge success, with the market value of multiple Rune series reaching hundreds of millions of dollars.

Additionally, Rodarmor hinted at an innovative audio-reactive generative art project at the recent Ordinals event in Hong Kong, further demonstrating the potential of the platform.