Bitcoin witnessed record-breaking fees due to the frenzy of activity on the new Runes Protocol, which went live on its fourth halving event.
After months of inactivity, Runes activity is seeing a notable resurgence.
Bitcoin Runes Stages Comeback
The latest data compiled by IntoTheBlock shows that the number of Bitcoin Runes transfers has tripled since hitting lows in August. This renewed interest has had a direct impact on Bitcoin's transaction fees, which have spiked by over 32% this week, marking their highest levels since August.
The surge in fees points to increased demand for block space, benefitting Bitcoin miners, who collectively earned $5 million in transaction fees over the past week, as reported by the crypto analytic platform.
Decentralized capital markets protocol Alkimiya also weighed in on the impact of recent Runes activity on the Bitcoin network and noted that the Runes transfers have surged over the past week, occupying over 50% of the blockchain's block space.
This uptick in activity has driven a notable increase in fees, with the average BTC median fee jumping from 7.944 sat/vB to 13.111 sat/vB – a roughly 65% rise in just one day. Alkimiya noted four separate spikes in fee rates, with the highest median fee rate reaching 50 sat/vB, all linked to four distinct Runes mints.
Hype Fades But Usage Continues
The Runes protocol debuted at block 840,000 in tandem with Bitcoin's halving in April this year, with the goal of boosting on-chain activity. Created by Casey Rodarmor, the mind behind Ordinals, Runes enables users to mint their own tokens on the Bitcoin network. This protocol was designed to improve upon the BRC-20 standard, which is known for its expensive token creation and management processes.
On Bitcoin's halving day, Runes generated more than $62 million in revenue and contributed to a total daily transaction fee surge of $81 million, with the average fee per transaction hitting an all-time high of $128. During the first week after the protocol's launch, Runes-driven transactions dominated the Bitcoin network. However, activity on the Runes protocol significantly declined in the weeks that followed, though usage persisted.
In September, Bitcoin Runes surpassed 50 million inscriptions – a figure achieved in less than five months after its launch.