Key Points
- The Runes token standard generated over $135 million in transaction fees in its first week on the Bitcoin network.
- Runes-related activity accounted for 45% of Bitcoin transactions, with over 3 million transactions involving Runes since its launch.
The Runes token standard was recently introduced on the Bitcoin network, accumulating over 2129 bitcoin (equivalent to $135 million) in transaction fees within the first week.
The Runes system leverages Bitcoin’s UTXO model and the OP_RETURN opcode for a more efficient tokenization solution than the BRC20 standard based on the Ordinals protocols.
Runes System and Its Impact
This system, developed by Casey Rodarmor, enables users to mint tokens on top of Bitcoin, typically memecoins. The Runes system was initiated alongside the fourth Bitcoin halving, happening at block height 840,000, and has rapidly become a significant contributor to network transaction and fee activity.
On Thursday, Runes-related activity made up 45% of Bitcoin transactions, while regular transactions accounted for 51%. Since its inception, the network has processed over 3 million transactions involving Runes.
Runes Trading and Network Impact
Data from the Runes trading protocol, Unisat, shows approximately 11,000 Runes tokens have been minted to date. This has increased the demand for network blockspace and, consequently, network fees. On April 25, the average transaction fee was around $40, a significant rise from the $5 seen at the start of April.
The release of Runes also corresponded with a rise in Bitcoin’s mining difficulty, which increased by 2% on Wednesday to reach a new record high. This marks the first increase in mining difficulty immediately after a halving event, indicating increased miner engagement.
Among the tokens under the Runes standard, DOG is the most notable, boasting the highest market cap among Runes at over $400 million. DOG is linked to the Runestone NFT collection from Bitcoin Ordinals explorer Ord.io co-founder Leonidas. Other tokens that have garnered interest in the Runes ecosystem include RSIC Genesis, Satoshi Nakamoto, Wanko Manko, and Bitcoin Pepe Matrix.