The launch of the Runes protocol has caused a significant increase in Bitcoin (BTC) daily fees, surpassing the previous all-time high (ATH), reports crypto analytics firm IntoTheBlock.
According to Lucas Outumuro, head of research at IntoTheBlock, Bitcoin transaction fees reached $80 million on April 20th, which is four times higher than the previous ATH set over six years ago.
Runes is a new protocol created by Casey Rodarmor, who also developed Ordinals. Its goal is to enhance the efficiency of creating fungible tokens on the Bitcoin network.
Outumuro states, “The launch of Runes on Bitcoin has been absolutely incredible… Daily fees have reached an ATH of over $80 million… This is approximately four times higher than the previous ATH set in December 2017. The average BTC transaction fee was a staggering $128, surpassing the peak of $30 reached during the initial Ordinals frenzy.”
The launch of Runes after Bitcoin’s halving on April 19th, which reduced miners’ rewards by half, has resulted in increased miners’ earnings due to the surge in transaction fees.
“One of the most astonishing statistics is that miners are now earning more than before the halving. Within 24 hours of the halving, inflationary rewards dropped by 50%, but Runes caused transaction fees to spike by 1,200%. On April 20th, miners generated a record revenue of over $100 million,” says Outumuro.
Outumuro also observes that a specific group of market participants is responsible for the rise in Runes-related transactions.
“New Bitcoin addresses have reached a two-year low, indicating that most of the activity related to Runes is coming from crypto enthusiasts. It will likely take some time before retail investors start participating.”
In conclusion, the Runes protocol launch has led to a significant increase in Bitcoin transaction fees, surpassing previous records. Miners are now earning more than before the halving, mainly due to the surge in fees caused by Runes-related transactions. However, retail investors are expected to join in the future.
