Bitcoin Runes: Analyzing the shift in network activity and fees

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  • Runes has continued to dominate Bitcoin transactions.
  • The fees on the Bitcoin network have dropped in the last few days.

As a researcher who has been closely monitoring Bitcoin transactions and network fees, I find it fascinating how Bitcoin runes have taken center stage in recent times. Based on my analysis, runes have dominated transactions on the network, with their number surpassing that of Bitcoin itself at certain points. This dominance is evident from the data showing that runes accounted for 81.3% of transactions on the network during its peak and currently account for 44.3%.

Following the buzz surrounding ordinals, Bitcoin [BTC] runes have emerged as the most popular topic on the network.

Over the past several months, the use of runes in transactions has markedly increased the volume of activities on the network, as demonstrated by our analysis. Furthermore, this trend has led to heightened transaction fees.

Bitcoin runes dominate transactions

A study of Bitcoin Rune transactions on the BTC network revealed a significant increase in activity around April. Based on data from Dune Analytics, there were over 753,000 Bitcoin Rune transactions recorded during this month.

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On that particular day, approximately 171,000 Bitcoin transactions occurred. No other day has recorded a higher number of Bitcoin transactions solely involving the cryptocurrency itself since then.

At its busiest point, runes accounted for a significant share of 81.3% in the total transactions conducted on the network following a thorough examination.

At present, there have been a total of 336,305 rune transactions, representing approximately 44.3% of the overall transaction volume.

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Instead of this, you could say: The BTC transaction number amounted to 359,563, which accounted for approximately 47.3% of the total network transactions. This underscores the substantial influence of runes on transaction fees within the network.

Bitcoin runes’ impact on fees

As a crypto investor, I delved into the fee structure of Bitcoin transactions using Dune Analytics. My findings revealed that high-value Bitcoin transactions, or “runes” as some call them, had a substantial influence on transaction fees during the early stages of the network’s existence.

Over the past few months, the influence of runes on transaction fees has noticeably decreased. In April, runes represented approximately 60-70% of the fees on the network. However, by the month’s end, their share dropped down to roughly 14%.

In May, the percentage of transaction fees attributed to Bitcoin runes rose, reaching around 26%.

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Despite facing challenges since then, the current fee rate for transactions stands at roughly 17 percent, resulting in around 9 BTC or approximately $630,000 being paid out in fees using runes.

In contrast, BTC transactions contributed about 56 BTC, worth around $4 million.

As a crypto investor observing the market, I’ve noticed that while runes still experience a considerable amount of trading activity, their influence on transaction fees seems to have weakened.

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Analyzing the network fees

Based on data from Crypto Fees, the cost of Bitcoin transaction fees has remained fairly consistent, hovering around the $2-$4 million mark for some time.

On the seventh of June, there was a notable increase in fees which surpassed $22 million. However, they dropped back down the following day. Presently, the fees hover around $5 million.

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2024-06-10 21:12