- Bitcoin Runes recorded a staggering 15.6 million transactions within just four months of launch.
- However, Bitcoin protocol has reclaimed 90% of its blockchain dominance.
As an analyst with over two decades of experience in the crypto realm, I’ve witnessed countless shifts and transformations within this dynamic space. The rise and fall of Bitcoin Runes is just another chapter in this ongoing saga.
Bitcoin [BTC] skeptics have yet again thwarted optimistic projections, impeding the expected surge beyond current levels.
In just four short months since its debut, Bitcoin Runes has made a massive splash in the world of Non-Fungible Tokens (NFTs), executing an astounding 15.6 million transactions. This rapid growth signifies a notable change in the NFT sector, which has historically been ruled by giants like Ethereum.
This event highlights Bitcoin’s use beyond just being a store of value.
Rune’s enhanced efficiency congested Bitcoin network
According to data from Dune Analytics, Bitcoin Runes experienced unusually high transaction volumes during its initial two-month period, often surpassing 300,000 daily transactions.
As a researcher, I can succinctly state that the significant increase in transactions led to Runes commanding a sizable share of Bitcoin’s network resources, surpassing Ordinals and the BRC-20 protocol in performance.
Source : Dune
During its busiest time, the Bitcoin Rune system momentarily accounted for about 81.3% of Bitcoin’s total network data transfer to ensure fast transaction processing. This heavy utilization of the network suggested that the Rune system was making extensive use of Bitcoin’s available network resources.
Using Runes significantly for data transfer might have impacted Bitcoin’s transaction speed and the general quality of user interaction within the network.
As a result, in April, the average transaction fee on the Bitcoin network significantly rose, possibly causing network overload and increased costs for Bitcoin users.
Source : CryptoQuant
Bitcoin reclaims dominance causing Runes to malfunction
Over time, it was observed that the number of transactions on Bitcoin Runes decreased significantly. This decline could be due to various reasons such as intensified competition from alternative protocols or Bitcoin regaining its control over the network.
Source : Dune
The Bitcoin Runes procedure was introduced as a more streamlined option compared to Bitcoin Ordinals, and it’s been rapidly gaining popularity among investors due to its competition with BRC-20.
For the past four months, Runes has regularly outperformed BRC-20 in terms of daily transaction volume. Yet, over the last two months, daily Runes transactions have noticeably decreased, averaging approximately 50,000 transactions per day.
Following another spell where Bitcoin was the primary driver of network activity, it accounted for about 90% of all the transactions taking place.
Source : Dune
Read Bitcoin’s [BTC] Price Prediction 2024-25
As a crypto investor, I’ve noticed a resurgence of Bitcoin’s supremacy, which underscores its robustness in retaking the throne as the primary hub for transactional activities. Previously thriving apps seem to pale in comparison.
The fact that it leads in transaction volume shows Bitcoin’s strong standing, but its price fluctuations will depend on positive market trends and the attitudes of investors.
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2024-08-28 12:08