Bitcoin Runes has recorded a staggering 15.6 million transactions within just four months of launch. What it means for Bitcoin [BTC]?
- Bitcoin Runes recorded a staggering 15.6 million transactions within just four months of launch. However, Bitcoin protocol has reclaimed 90% of its blockchain dominance.
Bitcoin [BTC] bears have once again sabotaged bullish hopes, preventing a much-anticipated breakout.
Bitcoin Runes, a new entrant in the NFT arena, has recorded a staggering 15.6 million transactions within just four months of launch. This development marks a significant shift in the NFT landscape, traditionally dominated by platforms like Ethereum.
This event highlights Bitcoin’s use beyond just being a store of value.
Rune’s enhanced efficiency congested Bitcoin network
Data from Dune Analytics showed that during its first two months, Bitcoin Runes saw peak activity levels, frequently exceeding 300,000 transactions per day.
Put simply, this surge in transactions meant that Runes dominated a substantial portion of Bitcoin’s network resources, outperforming the ordinals and BRC-20 protocol.
Source : Dune
At its peak, Bitcoin Runes briefly consumed 81.3% of Bitcoin’s network bandwidth to maintain high transaction throughput. This substantial bandwidth usage indicated that Runes was using a significant portion of Bitcoin’s network capacity.
The dominance of Runes in terms of bandwidth consumption may have influenced Bitcoin’s transaction throughput and the overall user experience on the network.
Consequently, in April, the mean transaction fee on the Bitcoin blockchain saw a significant increase, potentially leading to network congestion and higher fees for Bitcoin users.
Source : CryptoQuant
Bitcoin reclaims dominance causing Runes to malfunction
As time progressed, Bitcoin Runes saw a decrease in its transaction volume. Several factors may have contributed to this shift. For instance, increased competition from other protocols or Bitcoin reclaiming the network dominance.
Source : Dune
The Bitcoin Runes protocol was launched as a more efficient alternative to Bitcoin Ordinals and a rival to BRC-20, quickly gaining favor among investors.
Over the past four months, Runes has consistently surpassed BRC-20 in daily transaction volume. However, daily Runes transactions have declined in the last two months, averaging around 50,000 transactions per day.
This came after Bitcoin once again dominated network usage, accounting for approximately 90% of the total activity.
Source : Dune
Read Bitcoin’s [BTC] Price Prediction 2024-25
The shift back to Bitcoin dominance highlights the network’s ability to reclaim its position as the leading platform for transaction activity, overshadowing other applications that had previously gained traction.
While this dominance highlights Bitcoin’s robust position in transaction volume, its price performance will ultimately hinge on favorable market conditions and investor sentiment.
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