The Bitcoin Runes protocol, which initially dominated daily transactions after its launch, is now experiencing a decline, with Bitcoin regaining its network dominance.
Decline in Network Transactions
Since its launch on April 20, the Bitcoin Runes protocol has consistently used the most bandwidth on the Bitcoin network, accounting for over 50% of transactions on 13 different days. However, it hasn’t reached this level in over four weeks.
Bitcoin Reclaims Dominance
As the hype around Runes fades, Bitcoin has reclaimed its dominance in bandwidth allocation on the Bitcoin network. Bitcoin now represents 90% of all transactions on the blockchain. On July 17, Runes accounted for 7.9% of transactions, while BRC-20 and Ordinals made up 1.1% and 0.4%, respectively.
Decreasing Interest in NFTs
Over the past month, Runes’ share of Bitcoin network transactions has averaged under 9%, indicating a waning interest among investors in Bitcoin–based non–fungible tokens (NFTs). After its launch, Runes recorded the highest number of daily transactions in the initial weeks, helping Bitcoin miners earn over 2,540 BTC in three months.
Runes generated 2,500 BTC in fees within two months of launch, but this dropped to just 41 BTC in fees the following month, highlighting a significant shift in investor sentiment.
Future Outlook
Pseudonymous DeFi researcher Ignas suggests that Bitcoin Runes’ “real opportunity” may come after the initial investor hype fades. On X, they commented:
“Runestone, RSIC, and PUPS are already pumping, promising holders shiny new Rune token airdrops. And FOMO threads keep coming. But, like the NFT frenzy post-JPEG reveal, the market could soon cool off.”
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