Crypto News Today- Activity on the Runes Protocol Experiences Substantial Decrease

Runes Protocol Experiences: Sees Significant Decline in Activity Since Debut Week

Crypto News– Activity on the Runes protocol has seen a noticeable downturn since its initial week of trading. On May 10, a stark decrease in activity was observed, with minimal new mints and new wallets engaging with the protocol.

Decline in Fee Revenue

Data from a Dune Analytics dashboard indicates a steady decline in the protocol’s fee revenue. Although Runes still generates hundreds of thousands of dollars daily in fees on the Bitcoin blockchain, total fees have surpassed $1 million only twice in the last 12 days, indicating a downward trajectory.

Runes, introduced as a new Bitcoin token standard by Ordinals creator Casey Rodarmor, enables users to create fungible tokens on the blockchain. The protocol debuted on April 20, coinciding with the latest Bitcoin halving event. This launch sparked investor frenzy, resulting in a surge in transaction fees and record-breaking earnings for Bitcoin miners, exceeding $135 million in fees during the first week alone.

Recovery and Potential

Despite a consistent decline in Runes-related transactions until May 2, the protocol began to recover from May 3 onwards, reclaiming its transaction share above 60% on May 4 and 5. This was welcomed by the mining community, as their earnings had dropped significantly post-Bitcoin halving. Runes has achieved notable success, with several Rune collections boasting market capitalizations in the hundreds of millions of dollars. Moreover, Rodarmor hinted at an innovative audioreactive generative art project during an Ordinals event in Hong Kong, underscoring the platform’s potential for further innovation and growth.

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