The Runes protocol, which operates on the Bitcoin network, has experienced a significant decline in transactions in December, falling well below the highs it reached earlier in 2024. This development is particularly noteworthy given the protocol’s initial dominance in terms of bandwidth on the Bitcoin network.
Runes’ Rise to Prominence
In April 2024, Runes reached an all-time high of over 753,000 transactions, surpassing the Ordinals protocol, BRC-20s, and even Bitcoin itself. This milestone accounted for more than 81% of all transactions in the Bitcoin blockchain at the time (Source: Dune). The surge in popularity can be attributed to the growing interest in Bitcoin-based non-fungible tokens (NFTs) and the potential for Runes to provide a scalable solution for NFT transactions.
A Brief Resurgence, but Decline Continues
While the protocol’s momentum continued through May, it tanked in the middle of the month. However, Runes experienced a significant increase in transactions throughout June before dropping by over 88% towards the end of the month. This pattern of growth followed by decline has been a recurring theme for the Runes protocol.
15 Million Transactions in the First Four Months
Despite the fluctuations, the Runes protocol demonstrated its potential for longevity by recording over 15 million transactions in its first four months of operation. By August, the protocol had generated over $160 million in fees and reached an impressive 15.6 million NFT transactions.
Brief Resurgence in August, but Decline Continues
On August 23, Runes experienced a brief resurgence with 255,000 transactions, but this momentum was short-lived. The protocol’s transaction share continued to decline throughout the last quarter of 2024, struggling to reach its previous highs.
Transaction Share in December
In December, Runes’ transaction share in Bitcoin continued to decline, averaging less than 10% for the month. However, on Christmas Day, the protocol experienced a 19.9% share in Bitcoin transactions (Source: Dune).
Decline in Interest Amid Broader NFT Slump
The decline in interest in Bitcoin Runes is part of a broader decrease in enthusiasm for NFTs as a whole. In 2024, NFT sales volumes hit their lowest point in September when they dropped below $300 million for the first time since 2021 (Source: various market trackers). The brief recovery in November and December was insufficient to stem the decline.
The Future of Runes
While the Runes protocol has shown potential for longevity, its current trajectory is concerning. As interest in NFTs continues to wane, it remains to be seen whether Runes can adapt and maintain a significant presence on the Bitcoin network.
Related Articles
- Bitcoin Runes Racks Up Over 2,500 BTC in Fees Under 2 Months: Read about how the Runes protocol has generated substantial fees for users.
- 68% of Runes Are in the Red — Are They Really an Upgrade for Bitcoin? Explore the implications of the Runes protocol’s performance on the Bitcoin network.
Subscribe to Finance Redefined
Stay up-to-date with the latest developments in DeFi, NFTs, and blockchain technology. Our newsletter provides sharp analysis and uncovers new financial opportunities to help you make informed decisions.
- Subscribe: Get access to our weekly toolkit that breaks down the latest DeFi news, offers insightful analysis, and identifies emerging trends.
- Terms of Service | Privacy Policy
By subscribing, you agree to our Terms of Services and Privacy Policy.
