Runes Protocol Performance Drops in December: Impact on Bitcoin Transactions
Runes protocol on the Bitcoin network experienced a notable decline in transaction volume in December, falling significantly from the highs reached earlier in 2024. Despite a strong start earlier in the year, the protocol saw its transaction share fall below 10% in the final month of 2024.
Runes Protocol’s Strong Start in 2024
Since its launch, Runes consistently maintained the highest bandwidth on the Bitcoin network, surpassing major protocols like Ordinals, BRC-20s, and Bitcoin (BTC) itself. On April 23, 2024, Runes achieved a remarkable 753,000 transactions, which accounted for more than 81% of all transactions on the Bitcoin blockchain. This performance marked Runes as a dominant player within the ecosystem.
Fluctuating Momentum in 2024
While Runes’ transaction volume remained impressive throughout April and into the beginning of May, the protocol’s activity began to dip in mid-May. Following a significant increase in transactions through most of June, the Runes network saw a dramatic decline, with its transaction count dropping by more than 88% towards the end of the month. By July, the protocol’s transaction share had fallen below 9%, signaling a shift in investor interest away from Bitcoin-based NFTs (non-fungible tokens).
Milestone Achievements Despite Declining Interest
Despite the downward trend, Runes showed considerable potential with over 15 million transactions recorded in its first four months. By August, the protocol had generated over $160 million in fees, reaching 15.6 million NFT transactions. A brief resurgence occurred on August 23, when 255,000 transactions were recorded, briefly lifting the protocol’s activity levels.
Struggles in the Final Quarter of 2024
However, the decline in Runes’ transaction volume continued into the third quarter of 2024, with September marking another downturn. The protocol struggled to regain its previous highs, and by December, its transaction share in Bitcoin had plummeted. Throughout December, Runes consistently maintained a transaction share of less than 10%, with the exception of Christmas Day, when it briefly spiked to 19.9% of Bitcoin transactions.
Broader NFT Market Decline
The decline in Runes’ transactions coincided with a broader downturn in the NFT market. NFTs saw a seven-month slump in 2024, with a brief recovery in November and December. The lowest point occurred in September, when monthly sales volumes for digital collectibles fell below $300 million for the first time since 2021.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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