Bitcoin Daily Fees Reach New All-Time High Following Runes Protocol Launch

According to crypto analytics firm IntoTheBlock, the recent launch of the Runes protocol has propelled Bitcoin (BTC) daily transaction fees to unprecedented levels, surpassing previous all-time highs.

Lucas Outumuro, head of research at IntoTheBlock, highlighted on X social media platform that on April 20th, Bitcoin transaction fees surged to an astonishing $80 million. This figure represents a fourfold increase compared to the previous all-time high recorded over six years ago.

Runes, a novel protocol developed by Casey Rodarmor, the creator of Ordinals, is aimed at enhancing the efficiency of creating fungible tokens on the Bitcoin network.

Outumuro remarked:

"The launch of Runes on Bitcoin has been absolutely insane… Daily fees set an all-time high of over $80 million… The $80 million in daily fees is approximately 4x larger than the previous ATH set in December 2017. The average BTC transaction fee was a whopping $128, dwarfing the $30 peak reached during the first Ordinals frenzy."

Source: IntoTheBlock/X

The introduction of Runes, particularly following Bitcoin's halving on April 19th, has led to a surge in transaction fees, thereby bolstering miners' rewards.

Outumuro noted:

"Here’s one of the craziest stats: miners are now earning more than before the halving. 24 hours after the halving, inflationary rewards have dropped by 50%, but transaction fees spiked 1,200% due to Runes. Miners made a record $100 million-plus in revenue on April 20th."

Source: IntoTheBlock/X

Additionally, Outumuro observed that the surge in Runes-related transactions was predominantly driven by a specific group of market participants, indicating that widespread retail participation may take some time to materialize.

"New addresses on Bitcoin reach a two-year low. This suggests most of the Runes-related activity is coming from crypto degens. It will likely take some time until retail begins participating."

Source: IntoTheBlock/X

The launch of Runes has significantly impacted Bitcoin transaction fees and miners' revenue, signaling a notable development in the Bitcoin ecosystem and the broader crypto market.