Bitcoin’s Runes Protocol Hype Falls Short: Significant Drop in Activity and Fees

It has been 29 days since the halving and the launch of the Runes protocol, and since May 1, Runes activity has been underwhelming, falling short of the expectations set months prior. Similarly, the trend of Ordinals inscriptions has significantly declined over the past month.

Runes Protocol’s Initial Excitement Dwindles Amid Decreased Activity

Before the halving, the Runes protocol generated a lot of excitement, with many anticipating it would be the next major development. When the halving occurred at block height 840,000, it seemed Runes would significantly impact the network as fees soared to over $240 per transfer.

However, the most active period for Runes mints and activity was April 26, with thousands of etchings occurring over four days. Since then, the situation has changed dramatically. On April 30, 2024, 86,047 etchings were added to the Bitcoin blockchain, but only 6,122 etchings have occurred over the past 18 days.

Runes protocol activity since April 20, 2024.

The lowest activity day was May 12, with only 120 Runes printed, while the highest was May 3, with 1,203 Runes etched. Yesterday, May 17, only 143 etchings were recorded. Concurrently, the fees for producing Runes have decreased along with the activity.

To date, bitcoin (BTC) miners have earned $4.56 million in fees from Runes, with the majority collected during the etching period between April 19 and April 30. At the same time, data from Dune Analytics shows a significant slowdown in Ordinal inscriptions since April 20.

Each day since then, fewer than 35,000 inscriptions have been processed. While the initial enthusiasm for Runes and Ordinals inscriptions was strong, the data indicates that the excitement has diminished, at least for now, as activity levels have notably decreased in the month following the Bitcoin halving and the Runes protocol launch.

What do you think about the decrease in Runes and Ordinals activity? Share your thoughts and opinions about this subject in the comments section below.

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