Runes Protocol Faces Decline In Bitcoin Transactions

According to Cointelegraph, the Runes protocol on the Bitcoin network has experienced a significant decline in transaction volume, struggling to reach the heights it once achieved earlier in 2024. Initially, Runes dominated the Bitcoin network, recording over 753,000 transactions on April 23, surpassing other protocols like Ordinals, BRC-20s, and Bitcoin (BTC) itself. This accounted for more than 81% of all transactions on the Bitcoin blockchain at that time. The protocol maintained its momentum into early May but saw a downturn by mid-month. Despite a surge in transactions throughout June, Runes struggled to sustain interest, with transaction numbers dropping by over 88% by the end of the month. In its first four months, Runes recorded over 15 million transactions, indicating its initial popularity. However, by July, the protocol's share of transactions had fallen to an average of less than 9%, reflecting a waning interest in Bitcoin-based non-fungible tokens (NFTs). Despite this decline, Runes showed potential for longevity, generating over $160 million in fees and reaching 15.6 million NFT transactions by August. A brief resurgence occurred on August 23, with 255,000 transactions recorded. The downward trend continued into September and persisted throughout the last quarter of 2024, with Runes struggling to regain its previous transaction highs. In December, the protocol's share of Bitcoin transactions remained below 10% for most of the month, except on Christmas Day, when it briefly rose to 19.9%. This decline in interest in the Runes protocol coincides with a broader decrease in NFT interest. Throughout 2024, NFTs experienced a seven-month downturn, only seeing a temporary recovery in November and December. September marked a low point for NFTs, with monthly sales volumes for digital collectibles falling below $300 million for the first time since 2021.