HomeCrypto NewsHalving of Bitcoin: a look back at a nightmare for the Runes

Halving of Bitcoin: a look back at a nightmare for the Runes

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On April 20, Bitcoin witnessed the fourth halving in its history. At the same time, a new protocol called Runes was launched the same day by the creator of the Inscriptions. After a successful launch, the craze for Runes already seems to be passing.

Runes the successor of the Ordinals

The protocol Runes was presented by Casey Rodarmorthe founder, as being created for degens and memecoins.

In practice, this allows the creation of fungible tokens on Bitcoin, more efficient than the BRC-20 introduced by the Ordinals protocol.

Indeed, the Ordinals present inefficiencies, particularly during transfers. Thus, Ordinals can only be transferred individually to a destination address. Therefore, it is not possible to divide them, or send several.

For their part, Runes behave more like Ethereum’s ERC-20. These are fungible tokens that are divisible and can be sent in batches to a destination address.

In addition, their architecture would even allow them to evolve on the Bitcoin Lightning Network.

Runes already in decline

When launched, transactions linked to the protocol Runes accounted for up to 80% of transactions taking place on Bitcoin.

However, this was only short-lived. Indeed, despite significant enthusiasm from April 20 to 24, the use of Runes collapsed and at the beginning of May they only represented 10% of transactions on the network.

Despite a slight return of enthusiasm between May 3 and 6, these currently represent less than 15% of transactions recorded on Bitcoin.

For comparison, 600,000 Runes transactions were recorded on April 20 when they were launched. Since May 6, there have been no more than 100,000 Runes transactions per day.

Curve of the evolution of the number of transactions on the Runes protocol
Drop in the number of Runes transactions – Source: Dune.

A rather active secondary market

However, although the Runes protocol is less active on the creation of new tokens, the secondary market is very active.

According to the data compiled by @Bitcoin_allday, May 13, Runes recorded a volume of 3.14 million dollars on the various exchange platforms.

Bitcoin Runes secondary market dataBitcoin Runes secondary market data

For its part, the capitalization of all Runes tokens hovers around $850 million.

For their part, Bitcoin miners risk seeing their income drop drastically if the popularity of Runes and Ordinals continues to decline. Fortunately, a slight drop of 6% in mining difficulty slightly relieves the latter.

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