Runes, a novel token standard implemented on the Bitcoin blockchain, has dominated the majority of Bitcoin transactions since its launch following the network’s halving event on April 20th.
According to data from the blockchain research firm Crypto Koryo, over 2.38 million Runes transactions have been processed, accounting for 68% of all Bitcoin transactions made since its launch on April 20th.
These figures include ordinary peer-to-peer Bitcoin transactions, as well as BRC-20s, Ordinals, and Runes.
Runes experienced its peak on April 23rd, with over 750,000 transactions. However, the following day saw a significant decrease in transaction volume, with only 312,000 transactions taking place.
The initial surge in demand at block 840,000 was primarily driven by enthusiasts of memecoins and nonfungible tokens who were eager to utilize the Runes protocol to engrave and etch “rare satoshis.”
Consequently, Runes transactions accounted for nearly 70% of miner fees on the halving day. Since then, the daily percentage has fluctuated between 33% and 69%.
Despite this success, industry experts are divided on whether Runes will provide a sustainable revenue stream for Bitcoin miners. Additionally, there is already a noticeable discrepancy between the number of Rune transactions and the miner fees earned from them.
The new protocol, developed by Casey Rodarmor, the inventor of Ordinals, has been marketed as a more efficient method for creating new tokens on the Bitcoin network compared to the BRC-20 token standard, which is based on Ordinals.
However, not everyone is pleased with the amount of block space occupied by Runes transactions in recent days. Nikita Zhavoronkov, a lead developer at blockchain search engine Blockchair, is among the critics who believe that Bitcoin has strayed from its original purpose as a peer-to-peer electronic cash system, as envisioned by its pseudonymous creator, Satoshi Nakamoto.
In conclusion, Runes has quickly become a dominant token standard on the Bitcoin blockchain, with a significant share of transactions. While it has generated excitement and revenue, there are concerns about its long-term viability and its impact on the efficiency of the Bitcoin network.