User activity has plunged after a hyped run-up to the start of the Runes protocol , which was expected by some to mirror Solana’s meme coin ecosystem.
New daily Runes etched on Bitcoin falls 99% from post-halving peak
Only 157 new Runes were etched on Bitcoin on May 13, which contributed to just $3,835 in transaction fees paid to Bitcoin miners.
OKX surpasses 50% of Bitcoin Runes market share
The protocol is now an integral part of the Bitcoin ecosystem alongside Ordinals and BRC-20 tokens.
Stacks active accounts reach record high amid growing interest in Bitcoin DeFi
The growing interest in Runes and Bitcoin DeFi will drive more activity to layer-2 networks, according to Stacks’ product manager.
Bitcoin DeFi ecosystem thrives despite market correction
The Bitcoin DApp ecosystem has been reinvigorated by the invention of native protocols such as Ordinals and Inscriptions last year.
Bitcoin-Linked Stablecoin Firm OpenDelta Raises $2.5M
The startup is one of the first to build tokenized tech for Bitcoin’s Runes era.
The Protocol: Analyzing Runes Impact as Bitcoin Fee Bonanza Fades
Bitcoin Miners Strike Gold: $107 Million Profit From Runes-Fueled Minting Spree
Bitcoin miners have struck a proverbial goldmine, reaping an astonishing $107 million in profits, according to data from Glassnode, a leading analytics platform. This unprecedented windfall, amassed on April 20th, underscores a significant shift in the revenue dynamics of Bitcoin mining operations.
The meteoric rise in transaction fees serves as a bellwether for the evolving economic landscape of Bitcoin mining. As the network adapts to new market demands and technological advancements, transaction fees have emerged as a crucial revenue stream for miners. This trend is particularly noteworthy given the scheduled reductions in block rewards, highlighting the resilience and adaptability of Bitcoin’s economic model.
According to glassnode, affected by the Runes minting activity, on April 20, Bitcoin miner revenue reached US$106.7 million, of which 75.444% came from network transaction fees, both reaching record highs. https://t.co/lVSyqn1UaE pic.twitter.com/xjkkTor2I9
— Wu Blockchain (@WuBlockchain) April 21, 2024
Runes-Fueled Minting Spree Boosts Miner Revenue
Driving this surge in profitability is a recent minting spree focused on Runes, a pivotal development that has left a tangible mark on the network’s dynamics. Reports indicate that a staggering 75% of the total profits stemmed from transaction fees, marking a new pinnacle in the distribution of revenue among BTC miners.
Runes is similar to Ordinals; they both let users permanently store data directly on the Bitcoin blockchain, like an inscription etched in stone. But there’s a key distinction in what they store: Ordinals are one-of-a-kind digital collectibles, similar to fancy trading cards.
Runes, on the other hand, are designed to act more like meme coins, those widely tradable and often humorous tokens that have been a recent craze in the crypto world.
This paradigm shift in income composition underscores the growing importance of transaction fees as a vital income source, especially as block rewards face planned reductions in the context of Bitcoin’s halving system.
This financial triumph comes amidst ongoing debates surrounding the sustainability and profitability of mining activities. With escalating energy demands and mounting regulatory scrutiny, the viability of mining operations has been called into question. However, the recent data paints a reassuring picture of the economic vitality of Bitcoin mining, demonstrating its resilience in the face of external pressures.
Implications For Bitcoin’s Future
Beyond the immediate financial gains, the surge in transaction fees holds profound implications for the future trajectory of Bitcoin. The unprecedented collection of fees signifies robust network activity and user engagement, indicating strong demand and utilization of the Bitcoin blockchain.
This bodes well for the long-term sustainability and development of Bitcoin as a prominent digital currency, bolstering confidence among stakeholders and enthusiasts alike.
Featured image from VistaCreate, chart from TradingView
Bitcoin Layer 2 Coins, STX, ELA, SAVM, Outperform BTC After Halving
Bitcoin Miners Reap Windfall as ‘Runes’ Debut Sends Transaction Fees to Record Highs
The Bitcoin “halving” was supposed to dramatically chop revenue of bitcoin mining companies. Instead, the simultaneous launch of Casey Rodarmor’s Runes protocol has ignited a flurry activity on the oldest and largest blockchain, driving up fees.
Runes Protocol Launches on Bitcoin, Sending Fees Soaring as Users Rush to Mint Tokens
This Bitcoin Halving Is Different. But Is It ‘Priced In’?
Institutions launching Bitcoin ETFs this year have buoyed the bitcoin price to record levels. Does that mean the impact of the halving — the four-year slashing of the bitcoin reward — will be relatively muted this time, as any pontential bump is “priced in”?
Crypto Trader Predicts Next 100x Opportunity After 170x And 520x Wins
One of the crypto community’s most notable traders at the moment, Ansem (@blknoiz06), has recently ignited interest with his latest prediction, claiming another potential 100x opportunity. This time, his focus is on a new development on the Bitcoin network, which he believes is currently undervalued by the market.
Ansem stated via X:
Next 100x opp is runes on Bitcoin, 95% of CT is not paying attention to this at all compare volumes on Solana memecoins to current unisat volume & consider the wealth effect if Bitcoiners have their own native altcoins to buy provenance will b v imp here also imo.
An In-depth Analysis Of Ansem’s Successes
Lookonchain, a reputable on-chain analysis firm, provided an exhaustive look at Ansem’s latest trading history and strategy. Their analysis reveals a pattern of early investments in nascent cryptocurrencies that later became highly lucrative.
Ansem(@blknoiz06) – the best crypto trader who:
170x on $SOL 520x on $WIF 80x on $BONK
Yesterday, he tweeted that the next 100x opp is runes on Bitcoin.
1/ Let’s dig into his trading strategy. pic.twitter.com/vN2N2Aekbz
— Lookonchain (@lookonchain) April 17, 2024
On January 1, 2021, Ansem invested in Solana when it was priced at just $1.5. By November of the same year, the value of Solana had skyrocketed to $260, a return that significantly outpaced market expectations, netting a gain of over 170x.
Ansem’s acute sense of market potential was again on display with his investments in WIF and BONK. His tweet on December 12, 2023, suggesting that WIF had potential similar to SHIB (Shiba Inu), preceded a massive surge in WIF’s value from $0.09 to $4.85.
Similarly, his endorsement of BONK led to an impressive 80x increase in its price. “On October 30, 2023, Ansem tweeted ‘bonk great coin’, and then BONK skyrocketed! 4 months later, BONK exceeded $0.000047,” the firm stated.
Lookonchain further highlighted, “Ansem combines a strategic allocation of 70% in long-term holdings with 30% dedicated to short-term, speculative trades. This balanced approach helps mitigate risk while capitalizing on high-return opportunities. His success is a testament to his deep market insights, disciplined investment strategy, and timely execution.”
How To Follow The Crypto Traders’ Prediction
In response, prominent crypto analyst Cyclop (@nobrainflip), who boasts 346,000 followers, analyzed Ansem’s current prediction. He explained that the hype revolves around a newly developed protocol named Runes, created by the inventor of Ordinals, Rodarmor. Runes allows for the issuance of fungible tokens directly on the Bitcoin network, operating as a more integrated alternative to the BRC-20 protocol.
Unlike BRC-20, which follows an account model akin to Ethereum’s, Runes utilizes Bitcoin’s UTXO (Unspent Transaction Output) model, potentially offering a more seamless integration with Bitcoin’s existing infrastructure.
Notably, Runes are not just an alternative; they aim to replace the BRC-20 entirely. The protocol charges fees in BTC for creating tokens and is set to launch on Bitcoin’s halving day, April 19. The development of the Runes ecosystem is gaining traction, with various projects, tools, and platforms beginning to emerge.
With the anticipated launch of Runes scheduled for Bitcoin’s next halving day on April 19, the ecosystem around this new protocol is quickly developing. A variety of projects are already preparing to utilize Runes, with tools, launchpads, and other resources being actively developed.
The most notable, according to cyclop, are:
- Runecoin (RSIC): This project allows users to mine tokens in anticipation of the Runes launch. It has already distributed a 21,000 RSIC miner airdrop to over 9,000 wallets that hold Ordinal collections.
- Runes Terminal (RUNI): Aimed at developers, this platform is creating a test environment for Bitcoin applications that will utilize the Runes Protocol, facilitating innovation and simplification in the transition to new applications on the Bitcoin network.
- Pups Token (PUPS): With a pre-mint supply of 10 million tokens, this project plans an airdrop for holders of Rune Pup ordinals, who can also participate in token-burning events to reduce supply and potentially increase value.
The crypto analyst also advised that the hype around Runes is just starting. The “Ordinals community has spurred numerous projects to offer Runes airdrops. Thanks to Magic Eden, a new tab now conveniently lists all collections confirmed to distribute Runes to holders in one place.”
At press time, PUPS traded at $48.96, down 68% from its all-time high.
Runes, Casey Rodarmor’s Protocol for ‘Sh!tcoins’ on Bitcoin, Set to Go Live at Halving
Rodarmor created last year’s breakout Ordinals protocol, which is used to create non-fungible tokens (NFTs) on Bitcoin. Now, he says the relevance of protocols like his new Runes, used to create fungible tokens, is set to grow.
Bitcoin’s Halving May Be Here Sooner Than You Know (Again)
Several months ago, the halving was expected to take place on April 28; now it’s on track to land on April 18. Blame the surge in bitcoin’s price, which has attracted more mining power and sped up the network.
Bitcoin Ordinals haven’t wrestled blockspace from money TXs: Glassnode
Inscriptions have been acting more as a “packing filler,” stuffed into any remaining space once higher-value monetary transfers are packed into blocks, said the firm.
Bitcoin Ordinals creator Casey Rodarmor pitches BRC-20 alternative ‘Runes’
Bitcoin Ordinals inventor Casey Rodarmor says a fungible token protocol like Runes wouldn’t leave as much “junk” on the Bitcoin network as that of BRC-20 tokens.