Runes’ Activity Records a Significant Drop
The Runes protocol, a new system for creating fungible tokens on Bitcoin launched by Ordinals creator Casey Rodarmor, has seen a significant drop in activity following a white-hot launch period.
Debuting on April 20, 2024, to coincide with the latest Bitcoin halving, Runes initially sparked a frenzy. This early excitement drove Bitcoin transaction fees to record highs, generating a staggering $135 million in fees during the first week alone.
Data from Dune Analytics even shows that Runes transactions dominated the Bitcoin network at times, reaching a peak share of 81.3% on April 23rd. By comparison, Bitcoin transactions slumped to just 18.15% during that period.
However, this initial fervor has given way to a noticeable slowdown. May 10 marked a particularly significant drop in activity, with a steep decline in both newly minted tokens and new users interacting with the protocol.
This decline extends to fee revenue as well, which has exhibited a steady downward trend. While Runes still generates hundreds of thousands of dollars in daily fees, the total has only surpassed $1 million twice in the past twelve days.
