Bitcoin Runes, a protocol launched on April 20, has overtaken the original Bitcoin, Ordinals, and BRC-20 tokens in terms of daily transactions on the Bitcoin network. The Runes protocol is an experimental standard for fungible tokens built on the Bitcoin blockchain, which was introduced to enhance efficiency on BRC-20 tokens.
On April 23, Runes accounted for the highest transaction share at 81.3%, pushing Bitcoin’s transaction share down to 18.15%, while Ordinals and BRC-20 transactions each amounted to 0.1%. However, Runes transactions gradually declined over the subsequent nine days until May 3. On May 4 and 5, it reclaimed a transaction share above 60%. While the surge in transactions can inadvertently lead to higher network fees, it benefits Bitcoin miners. In just 16 days, the Runes protocol generated 2,253 BTC in fees for the mining community.
Bitcoin miners have welcomed the increase in fees as their earnings significantly decreased after the Bitcoin halving. In May, the total revenue for Bitcoin miners dropped to under $30 million per day. To maintain profitability, miners have been upgrading their mining equipment to reduce operating costs and improve performance.
The rise of Bitcoin Runes in daily transactions highlights the evolving landscape of the Bitcoin network and the ongoing efforts by miners to adapt to changing market conditions and optimize their operations.