Key Points
- Bitcoin Runes has surpassed the original Bitcoin, Ordinals, and BRC-20 tokens in daily transactions.
- The Runes protocol was launched to enhance efficiency on BRC-20, a standard for fungible tokens on the Bitcoin blockchain.
The Bitcoin Runes has reclaimed its leading position in the Bitcoin network by outperforming the original Bitcoin, Ordinals, and BRC-20 tokens in daily transactions.
The Launch of Runes Protocol
The Runes protocol was introduced on April 20, coinciding with the fourth Bitcoin halving, with the aim of boosting efficiency on BRC-20, a trial standard for exchangeable tokens on the Bitcoin blockchain. According to data from Dune Analytics, transactions related to Runes constituted the majority of transactions on the Bitcoin network until April 24.
On April 23, Runes secured the largest transaction share of 81.3%, pushing the Bitcoin (BTC) transaction share down to 18.15%, with Ordinals and BRC-20 transactions at 0.1% each. However, the number of Runes transactions gradually declined over the next nine days until May 2.
Runes Recovery
As shown, Runes started to recover from May 3. In the following two days, May 4 and 5, Runes regained its transaction share above 60%.
Although the rapid increase in the number of transactions inadvertently boosts the network fees, it often benefits Bitcoin miners. The Runes protocol accumulated 2,253 BTC in fees for the mining community in 16 days.
The mining community appreciates rising fees as their earnings significantly decreased following the Bitcoin halving. In May, the total revenue for Bitcoin miners fell to less than $30 million per day.
To sustain profitability, miners have resorted to upgrading their current technology stack with highly efficient mining rigs to lower operating costs and enhance performance and profitability. Bitcoin mining company Bitfarms has allocated $240 million for its upgrade, which will eventually triple its hash rate to 21 exahashes per second. Moreover, Bitfarms sold almost all the Bitcoin it mined over the past two months as it continues to reinvest into expanding its mining fleet.
