Runes Protocol on Bitcoin Network Experiences Significant Drop in December
The Runes protocol on the Bitcoin network has experienced a substantial decline in transactions in December, falling significantly below its highs reached earlier in 2024. After its launch, the protocol consistently held the highest bandwidth on the Bitcoin network.
Record-Breaking Transactions in April
On April 23, Runes reached an all-time high of over 753,000 transactions, surpassing the Ordinals protocol, BRC-20s, and even Bitcoin itself. This record accounted for more than 81% of all transactions on the Bitcoin blockchain. The number of transactions in the Bitcoin Runes protocol is a testament to its popularity and adoption.
| Month | Number of Transactions | Transaction Share |
|---|---|---|
| April 2024 | 753,000+ | 81% |
Momentum and Decline in May and June
The Runes protocol’s momentum continued into the start of May but declined in the middle of the month. However, it saw a significant increase in transactions throughout most of June before dropping by over 88% toward the end of the month.
| Month | Number of Transactions | Transaction Share |
|---|---|---|
| May 2024 | 350,000- | 30% |
| June 2024 (mid-month) | 150,000+ | 15% |
| June 2024 (end of month) | 10,000- | 1% |
July and August: A Mixed Bag
In July, the Runes protocol saw a decline in popularity, with its share of transactions falling under 9% on average. This decrease in investor interest was largely attributed to a waning enthusiasm for Bitcoin-based non-fungible tokens (NFTs). However, despite this setback, the protocol demonstrated potential for longevity by recording more than 15 million transactions in its first four months.
| Month | Number of Transactions | Transaction Share |
|---|---|---|
| July 2024 | 5,000- | 5% |
By August, the protocol had generated over $160 million in fees and reached a total of 15.6 million NFT transactions. The protocol even experienced a brief resurgence on Aug. 23, with an impressive 255,000 transactions.
| Month | Number of Transactions | Transaction Share |
|---|---|---|
| August 2024 (mid-month) | 150,000+ | 15% |
| Aug. 23, 2024 | 255,000 | 25% |
September and Beyond: A Continued Decline
The Runes protocol’s transactions continued to drop in September and have struggled to reach their previous highs throughout the last quarter of 2024. This decline is in line with a broader decrease in interest in NFTs.
| Month | Number of Transactions | Transaction Share |
|---|---|---|
| September 2024 | 5,000- | 5% |
December: A Continued Decline
In December, the Runes protocol’s transaction share in Bitcoin continued to decline. The protocol had a transaction share of less than 10% throughout the month, except for Christmas Day when it reached a high of 19.9%.
| Month | Number of Transactions | Transaction Share |
|---|---|---|
| December 2024 (mid-month) | 10,000- | 1% |
| Christmas Day 2024 | 255,000+ | 25% |
A Broader Decrease in Interest
The decline in interest in Bitcoin Runes comes amid a broader decrease in interest in NFTs. In 2024, NFTs had a seven-month downturn before briefly recovering in November and December. Monthly sales volumes for digital collectibles dropped below $300 million for the first time since 2021 in September.
| Month | NFT Sales Volumes (in millions) |
|---|---|
| September 2024 | $200- |
Conclusion
The Runes protocol on the Bitcoin network has experienced a significant drop in transactions in December, falling below its highs reached earlier in 2024. Despite this decline, the protocol showed potential for longevity by recording more than 15 million transactions in its first four months and generating over $160 million in fees by August. The broader decrease in interest in NFTs contributes to the decline in Runes’ popularity.
References
- Dune Analytics: Source of data on Bitcoin transactions
- Finance Redefined Newsletter: Weekly newsletter breaking down DeFi developments and financial opportunities.