Publicly available Bitcoin network fee data from blockchain explorers.

Runes Protocol Captures 68-72.7% of Bitcoin Transactions, Fees Hit 1000+ Sat/vB Post-Halving

Apr 24, 2024, 08:25 PM

The introduction of the Runes protocol on the Bitcoin network has significantly impacted transaction dynamics and miner economics. Since its launch on April 20, Runes has accounted for 68% to 72.7% of all Bitcoin transactions, causing transaction fees to spike to their highest levels since 2018, reaching approximately 1000+ Sat/vB. This surge in fees followed the recent Bitcoin halving event, which traditionally influences transaction costs and miner revenue. Despite the increased transaction fees, Bitcoin miner profits have been squeezed due to a decline in hash prices. The Runes protocol, leveraging Bitcoin's UTXO model, enhances token creation and management, potentially transforming Bitcoin's utility by enabling a more fungible token environment akin to Ethereum's. Additionally, a significant milestone was reached with 10,000 Runes etched, marking a notable point in the protocol's adoption.