Runes Transaction Share Drops More Than 40% After Bitcoin Bull Run

Key Points:

• Runes transactions on the Bitcoin network have dropped to 1.67% of daily activity, down from over 50% earlier this year, with daily fees falling below $250,000.
• Investor focus has shifted to other sectors like Ethereum NFTs, meme coins, and AI projects, reducing interest in Bitcoin-based protocols such as Runes and Ordinals.

According to The Block, Runes transactions on the Bitcoin network have fallen as low as 1.67% of the daily transaction amount from over 50% earlier this year.

Read more: Runes Protocol Fees Rapidly Decline After Nearly 1 Month Of Launch

Runes Transactions Plummet to Record Lows on Bitcoin Network

The decline points to a serious change in how the Bitcoin network is used and lowered interest in experimental Bitcoin-based protocols, such as Runes and Ordinals.

During the months of April and November, Runes seemed to be the king in transaction volumes on the Bitcoin network, clocking well over more than half of its overall total volumes on a daily basis. However, daily fees from Runes transactions are still below $250,000, indicating a rather quiet activity level in the ecosystem. Most analysts, as they say, attribute this to wider market dynamics and shifting investment priorities.

That interest has now been diverted into newer sectors, such as Ethereum-based NFTs, meme coins such as Shiba or Dogecoin, and AI-related projects, thus leaving behind Bitcoin’s token protocols. Also, as the prices keep fluctuating, the investors now tend to focus much away from the higher-risk applications like Runes, which require more stabilization in the prices for continued growth over time.

Stable Bitcoin Prices May Bring New Life to Runes Ecosystem

The sharp drop in Runes network share from above 50% to below 10% underlines how fast speculative interest can shift in the highly volatile cryptocurrency market.

Despite the present slowdown, there is a scope for recovery. Historically, when Bitcoin prices stabilized, ecosystem projects like Runes and Ordinals started gaining traction.