Runes, a recently introduced token standard on the Bitcoin blockchain, has experienced a significant decrease in its average daily transaction count, dropping by over 88% from its peak earlier this month.
According to data from Crypto Koryo provided by Dune Analytics, the average daily Runes transactions between June 22-28 was 37,820, representing a nearly 90% decline from the 331,040 daily average recorded between June 9-15. Notably, there were only 23,238 transactions on June 24, the lowest since the protocol was launched during Bitcoin’s fourth halving event on April 20.
The chart shows the daily Runes transactions since the protocol was launched on April 20. Source: Dune Analytics
Over the past week, Runes transactions have accounted for only 4.9-11.1% of all Bitcoin transactions. This sharp decline has had a significant impact on Bitcoin (BTC) miner fees, as they are still feeling the effects of the last halving event. Runes have contributed less than 2 Bitcoin in miner fees over the past six days, a massive drop from the record 884 Bitcoin on April 24.
The chart shows Bitcoin fees sourced from Runes since April 20. Source: Dune Analytics
Fees from Ordinals inscriptions and BRC-20 tokens have also been lower over the same period. These protocols were initially seen as a new revenue stream for Bitcoin miners, who previously relied on regular peer-to-peer Bitcoin transfers to collect network fees. While fees from Runes and Ordinals managed to cover the 50% reduction in block subsidy for the first few days after the April 20 halving event, trading volumes have since been largely unpredictable.
Runes, launched by Ordinals inventor Casey Rodarmor on April 20, has been promoted as a more efficient way to create new tokens on the Bitcoin network compared to the BRC-20 token standard and other solutions. The decrease in network fees, as well as Bitcoin’s price, has caused Bitcoin’s hash price, a crucial metric measuring miner revenue, to drop to nearly its lowest level ever.
In the meantime, Bitcoin miner reserves fell to 1.90 million Bitcoin on June 19, the lowest level in over 14 years in Bitcoin terms. Wolf Of All Streets, a magazine, expresses concerns about a world where Bitcoin reaches $1M, warning of a “Hall of Flame” scenario.