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Fear & Greed:
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Bitcoin:
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BTC Dominance:
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Market Cap:
$2.48 T

Bitcoin Runes Plummet: Transaction Fees for Miners Drop Sharply

Runes

On May 13, there were only 157 new runs etched onto the Bitcoin blockchain, which was a significant decrease in activity, and the Bitcoin miners got only $3,835 as transaction fees. This means a 99% drop from the peak of late April, when 23,061 Runes were etched in a single day, according to the data from a Dune Analytics dashboard by RUNES..

A Rollercoaster Month for Bitcoin Miners

Runes, a new token standard released during the fourth halving of Bitcoin on April 20, 2020, at first caused a rise in the income of Bitcoin miners. The protocol lets users write different types of media onto the Bitcoin network, which is why memecoin and nonfungible token enthusiasts like it. From April 26 to 30, the daily new Rune etchings average was around 14,700, which was a great financial help during the halving that reduced the block subsidy to 3.125 BTC (around $196,800) at current prices.

Sharp Decline in Transactions and Fees

Despite that, the recent decrease is very noticeable. During the last six days, the number of new runs etched daily has decreased to less than 250, with the lowest being 157  on May 13. This sudden drop in activity has led to a great reduction in the fees miners charge for transactions. In late April, miners were getting hundreds of thousands of dollars daily, but the recent figures show a dramatic fall.

Since its inauguration, Runes has amassed a total of $4.5 million. Bitcoin miners made 5 million dollars in transaction fees, which is about $189,000 per day. Although the number of new Runes has dropped, these transactions still make up the majority of Bitcoin’s activity in May, mainly on platforms like Magic Eden, OKX, Ordinals Wallet, and UniSat.

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The Future of Runes and Bitcoin

The runes were developed by the ordinary inventor Casey Rodarmor to make the blockspace usage of Bitcoin more efficient than the BRC-20 tokens. Contrary to BRC-20s, Runes are compatible with Bitcoin’s UTXO model; thus, UTXOs are able to store the balances of fungible tokens like Runes.

Though it is true that in the beginning people are very excited and they get a lot of money from it, Rodarmor conserves a practical attitude toward Runes. In the recent interview, he emphasized that Runes are not meant to change finance but are a fun tool for enthusiasts to use on the Bitcoin network.

As of today, slightly more than 91,200 rands have been inscribed on Bitcoin, which is a proof of the initial success and the recent drop of this new token standard.

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