- Loon to Bitcoin fees have dropped to 21.1% from a previous dominance of 77.3%.
- Miner revenues have plummeted due to decreased protocol and Ordinal activity.
Bitcoin Runes, the token standard launched by Bitcoin [BTC] The blockchain recorded a significant drop in activity in less than 30 days.
According to Dune Analytics, total charges on the network were nowhere near the highs of previous deployments.
Casey Rodarmor, the same developer of Bitcoin Ordinals, developed the Runes protocol. This protocol aimed to improve the creation and management of fungible tokens on the blockchain.
From Rodalmor’s perspective, this development could expand Bitcoin’s influence and attract users to the network. Interestingly, the introduction of Rune coincided with Bitcoin’s halving.
Activity stagnates, miners’ fanfare stops
So it didn’t take long for adoption to skyrocket. With this, the Runes protocol generated over $135 million in fees in its first week.
but, Data from Dune It was confirmed that the activity decreased according to the protocol. For example, as of April 20, Runes fees accounted for 77.3% of total Bitcoin fees.
At the time, other fees on the blockchain accounted for only 22.7%. However, as of this writing, it was no longer the same. This time, the market share for other rates was 78.9%, and Loon was 21.1%.
Source: Dune
If left unchecked, this decline poses a risk to miners. Previously, the creation and generation of new rune units helped miners earn quite a bit of money in the early stages.
During that period, AMBCrypto explained how the development of the protocol could act as a cover due to the rewards being cut in half.
However, that prediction may no longer hold true unless activity around the protocol begins to improve.
Looking at the Glassnode data confirmed this bias. According to Glassnode’s on-chain data, miners’ revenue on May 11 was 533.69 BTC.
This was a significant decrease compared to the value on April 20th. The total revenue at this time was 1677.09BTC. This decrease may be related to a decrease in the activity of the Runes protocol.
Source: Glassnode
ordinal numbers are not omitted
More broadly, this was also a sign of declining activity on the Bitcoin network. Meanwhile, Rune wasn’t the only one suffering from indifference.
Bitcoin ordinal and BRC-20 tokens had similar enthusiasm, according to Messari. To explain, the BRC-2o token is a fungible token created with Bitcoin using the Taproot update.
At the time of writing, ORDI, the largest BRC-20 token by market capitalization, was priced at $36.37.this is An astounding 61.88% decrease From the all-time high.
Source: Messari
Whether it’s realistic or not, ORDI’s market capitalization in BTC terms is as follows:
As with prices, volumes are also decreasing. As of this writing, ORDI’s trading volume was $628 million.
In December 2023, the same metric was over $6 billion. This means that interest in the token has decreased by a factor of 10.
