Runes protocol saw a surge in activity, but experienced a notable decline, especially on May 10.
Since the first week of trading on the Runes protocol, there has been a dramatic decline in the volume of activity on the platform. On May 10, there was a significant drop in activity, with relatively few new mints and new wallets communicating with the protocol.
Overall, the activity level was quite low. Dune Analytics’ dashboard indicates a steady decrease in the protocol’s fee revenue.
Declining Runes Protocol Fee Revenue
Even though Runes Protocol continues to make hundreds of thousands of dollars in fees on the Bitcoin blockchain every single day, the total fees have only crossed one million dollars twice in the past twelve days, which indicates that the trend is going in the opposite direction.
Casey Rodarmor, the author of Ordinals, introduced Runes as a new Bitcoin token standard. It gives users the ability to generate fungible tokens on the blockchain.
Ordinals made it possible for Bitcoin to use nonfungible tokens.The implementation of the Runes protocol took place on April 20, which was also the date of the most recent Bitcoin halving event.
The debut of Runes Protocol sparked a frenzy among investors, resulting in an increase in transaction costs and a bonanza for Bitcoin miners that broke records.
During the first week alone, Bitcoin miners generated more than $135 million in fees. Dune Analytics provided information that up until the 24th of April, Rune products accounted for the majority of transactions on the Bitcoin network.
On April 23, Runes claimed its largest transaction share of 81.3%, which pushed the Bitcoin transaction share down to 18.15%. Ordinals and BRC-20 transactions each made up 0.1% of the total number of transactions.
The number of transactions using Runes steadily decreased over the next nine days, up until May 2. On May 4 and 5, Runes was able to reclaim its transaction share, which had previously been below 60%.
This recovery began on May 3.In light of the fact that mining community earnings have considerably decreased as a result of the Bitcoin halving, the mining community welcomed the increase in fees.
In May, Bitcoin miners generated less than $30 million per day in total revenue. Similar to Ordinals, Runes introduced a new token standard on the blockchain that underpins Bitcoin itself.
Recently, Bitcoin executed a transaction worth one billion dollars. Magic Eden’s information indicates that Runes has already achieved significant success, with numerous Rune collections achieving market capitalizations in the hundreds of millions of dollars, respectively.
In addition, Rodarmor recently made a suggestion regarding an innovative audioreactive generative art project during an Ordinals event that took place in Hong Kong. This helps to further demonstrate the possibilities of the platform.