The Runes Protocol has lost its initial momentum three weeks after its launch on the Bitcoin blockchain. The new fungible token standard has declined in many respects, including network activity, after dominating the cryptocurrency sector shortly after Bitcoin’s last halving in April 2024.
The Runes Protocol generated $135 million in fees in the first week after Bitcoin’s halving, but activity has fallen dramatically since then, with May 10 being the lowest day for activity and exceeding $1 million in fees only twice in the last twelve days. generated fees. …
— Wu Blockchain (@WuBlockchain) May 12, 2024
Obviously, Bitcoin costs skyrocketed after Runes launched on the flagship crypto’s blockchain. Users attributed the increase in fees to the actions of excited investors fighting for block space. That’s why Runes generated over $135 million in transaction fees in its first week.
Meanwhile, the hype surrounding the new Bitcoin-based protocol has faded since its first week of trading, with all major growth metrics declining significantly. Data from Dunes Analytics, a platform that provides onchain data for blockchain protocols, showed that the Runes protocol experienced its lowest level of activity on May 10.
According to information from the Dunes Analytics Dashboard, the Runes Protocol experienced the fewest number of mints and interactions between new wallets on May 10. The analytics platform data further shows a decline in fees generated by Runes. It also revealed that the sum of fees generated by Runes has only exceeded $1 million twice in the last twelve days, even though the protocol still generates hundreds of dollars in daily transaction fees on the Bitcoin blockchain.
Some analysts see Runes’ current decline as normal, as most platforms struggle with early adoption. However, it is essential to note that the decline does not indicate that Runes is on its way to oblivion. According to Magic Eden data, several Runes collections have market caps in the hundreds of millions of dollars.
It is essential to note that the drop in network activity following the Bitcoin halving is not specific to Runes. Several sectors of the crypto ecosystem have experienced a slowdown, including the ETF markets, which have reportedly experienced a significant drop in inflows.
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