The Runes protocol on the Bitcoin network has experienced a notable decline in transactions since December, falling below its peak months earlier in 2024. The protocol, which had consistently held the highest bandwidth on the Bitcoin network after its launch, saw a significant drop in momentum towards the end of the year.
Runes’ Rise to Prominence
After the Runes launch, the protocol quickly gained popularity and became the dominant force on the Bitcoin network. On April 23rd, Runes recorded over 753,000 transactions, surpassing the Ordinals protocol, BRC-20s, and even Bitcoin itself. This milestone accounted for more than 81% of all transactions in the Bitcoin blockchain.
Transaction Numbers Over Time
The Runes protocol’s momentum continued through the start of May but began to wane in the middle of the month. However, the protocol saw a significant increase in transactions throughout most of June, only to drop by over 88% towards the end of the month.
Here is a breakdown of the transaction numbers for the Runes protocol over time:
- April: Over 753,000 transactions on April 23rd
- May: Continued momentum with high transaction numbers
- June: Significant increase in transactions throughout most of the month
- End of June: Transaction numbers dropped by over 88%
- July: Protocol saw a decline in popularity, with an average transaction share under 9%
- August: Brief resurgence on Aug. 23rd with 255,000 transactions
- September and October: Continued decline in transaction numbers
- December: Transaction share continued to decline throughout the month
Fees Generated by Runes
Despite the decline in popularity, the Runes protocol has shown potential for longevity after recording over 15 million transactions in its first four months. By August, the protocol had generated over $160 million in fees and reached 15.6 million NFT transactions.
Resurgence on Christmas Day
The only exception to the decline in transaction numbers was Christmas Day, when the Runes protocol saw a 19.9% share of Bitcoin transactions.
Decline in Interest in NFTs
The decline in interest in the Runes protocol comes amid a broader decrease in interest in NFTs. In 2024, NFTs experienced a seven-month downturn before briefly recovering in November and December. NFT sales volumes for digital collectibles dropped below $300 million in September, marking their lowest point since 2021.
Conclusion
The Runes protocol’s decline in popularity is a reflection of the broader trends in the market. As interest in NFTs continues to wane, it remains to be seen whether the Runes protocol will regain its momentum or continue to struggle to reach its previous highs.
Related Reading
- "Bitcoin Runes Racks Up Over 2,500 BTC in Fees Under 2 Months"
- "68% of Runes Are in the Red — Are They Really an Upgrade for Bitcoin?"
Subscribe to Finance Redefined
Stay up-to-date with the latest DeFi developments, sharp analysis, and new financial opportunities. Subscribe to our weekly newsletter delivered every Friday.
Subscription Benefits
- Break down of the latest DeFi developments
- Sharp analysis of market trends
- Uncovering of new financial opportunities
- Smart decision-making with confidence
Subscription Terms
By subscribing, you agree to our Terms of Service and Privacy Policy.