Bitcoin Runes, a non-fungible token (NFT) protocol introduced in April 2023, has facilitated over 16.4 million transactions and generated more than $162 million in fees since its launch.
This information comes from Dune Analytics, where data shows a significant increase in transaction activity between April and June.
On April 23, Bitcoin Runes saw its busiest day, recording 753,584 transactions within 24 hours. Although transaction volumes flattened in July, August saw a renewed uptick, with over 255,000 transactions recorded on August 23.
Runes was developed by Casey Rodarmor, who is also the creator of Bitcoin Ordinals. The protocol was introduced to offer a more efficient method for creating and trading NFTs on the Bitcoin network.
By allowing additional information to be attached to Bitcoin transactions, Runes can create specialized tokens, such as loyalty points, without causing congestion on the network. This improves Bitcoin’s functionality for various applications and positions Runes as a key competitor to both Ordinals and the BRC-20 protocol.
Since the launch of Runes, Ordinals have experienced a sharp decline in transaction numbers. After Runes entered the scene, Ordinals recorded approximately 3,000 transactions per day, a 98% drop from their peak of over 200,000 daily transactions in February. The BRC-20 protocol saw a similar decline. While it reached a peak of 468,233 transactions in January, after April, its highest daily transaction count was around 70,000.
These declines may not solely be due to competition from Runes. The broader NFT market has faced a downturn, and the earlier excitement surrounding Bitcoin’s halving event has also faded.
The enthusiasm from the halving had initially driven investor expectations and optimism. Runes capitalized on this period, generating $135 million in transaction fees during its debut week, significantly impacting Bitcoin transaction volumes and driving up fees.
