- Runes protocol lost momentum three weeks after launching on the Bitcoin blockchain.
- The protocol generated over $135 million in transaction fees in its first week of existence.
- Onchain data shows Rune experienced its lowest level of activity on May 10 2024.
Runes protocol has lost its original momentum three weeks after launching on the Bitcoin blockchain. The novel fungible token standard has dropped in many ways, including network activity, after dominating the cryptocurrency sector shortly after the last Bitcoin halving in April 2024.
Recallably, Bitcoin fees skyrocketed after Runes launched on the flagship crypto’s blockchain. Users attributed the fee hike to the actions of excited investors fighting for block space. Hence, Runes generated over $135 million in transaction fees in its first week.
Meanwhile, the hype surrounding the novel Bitcoin-based protocol has faded since the first week of trading, with all the main growth metrics dropping significantly. Data from Dunes Analytics, a platform that provides onchain data for blockchain protocols, showed Runes protocol experienced its lowest activity level on May 10.
According to information from the Dunes Analytics Dashboard, Runes protocol experienced the fewest number of new mints and interactions between new wallets on May 10. The analytics platform’s data further shows a decrease in fees generated by Runes. It also revealed that the sum of fees generated by Runes has breached $1 million only twice in the past twelve days, even though the protocol still generates hundreds of dollars in daily transaction fees on the Bitcoin blockchain.
Some analysts consider Runes’ current decline normal, as most platforms struggle with early adoption. However, it is essential to note that the decline does not suggest that Runes may be heading for obscurity. Observedly, several Runes collections have market capitalizations in the hundreds of millions of dollars, according to data from Magic Eden.
It is essential to note that the decline in network activity after the Bitcoin halving is not peculiar to Runes. Various sectors of the crypto ecosystem have experienced a slowdown, including the ETF markets, which have reportedly experienced a significant drop in inflow.
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