Bitcoin’s Rune Protocol Sees Decline in Activity

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After registering massive user activities in the last few weeks, the newly launched Runes Protocol has suddenly recorded a sizable dip.

Bitcoin Runes Protocol Ignites Market Excitement 

On May 10, data from the Dune analytics dashboard showed that Runes dropped to the lowest levels of new mints and new wallet interactions since the protocol went live on April 19. This downtrend shows that the initial excitement around the protocol has dropped. Also, it suggests that the novelty of the Runes protocol is gradually fading off among users.

Runes protocol was launched on April 19 by Ordinals creator Casey Rodarmor, just before the much-anticipated Bitcoin halving event. At first, Bitcoin miners saw an upsurge in transaction fees owing to the debut of the protocol. In precise terms, over $135 million in transaction fees was registered in the first week of launch. The market looked good until recently when the decrease in engagement and activities became noticeable.

Fluctuations in Rune Engagement And Activity

According to Dune Analytics, Runes-related transactions comprise the majority of the transactions on the Bitcoin network. Then on April 23, the protocol claimed its highest transaction share of 81.3%, and this pushed Bitcoin transaction share down to 18.15%, while Ordinals and BRC-20 transactions at 0.1% each.

Since that time until May 2, the Bitcoin Runes Protocol registered nine days of consistent decline. By May, it showed signs of recovery then regained its transaction share above 60% on May 4 and 5.

In addition to the reduced activity, there has been a decline in transaction fees generated by Runes. The protocol still contributes to Bitcoin blockchain’s daily fees, fetching hundreds of thousands of dollars. However, it has only surpassed the $1 million mark twice in the past twelve days, indicating a downward trend.

Bitcoin Price Shows Signs of Recovery

On the other hand, Bitcoin has seen a 0.93% increase within the last 24 hours and is now trading at $61,521.14. This is still a far cry from its all-time high (ATH) of more than $73,000 in mid-March. Market observers still believe in the potential of the coin to hit a new ATH in no time.

Twitter and Square CEO Jack Dorsey recently shared his bullish prediction for Bitcoin, suggesting that the flagship cryptocurrency could potentially reach a staggering price of at least $1 million by the year 2030.

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