The Runes protocol on the Bitcoin network has seen a significant drop in transactions in recent months, falling well below its highs reached earlier this year. Despite reaching an all-time high of 753,000 transactions on April 23rd, the protocol’s momentum has been steadily declining since May.
Rise to Prominence
In April, Runes consistently had the highest bandwidth on the Bitcoin network, with over 753,000 transactions recorded on April 23rd. This accounted for more than 81% of all transactions in the Bitcoin blockchain. The record-breaking number eclipsed the Ordinals protocol, BRC-20s, and even surpassed the native Bitcoin (BTC) transactions.
Dipping Popularity
While Runes continued to see a significant number of transactions through May, its momentum began to tank towards the middle of the month. However, the protocol saw a brief resurgence in June with an increase in transactions for most of the month. Unfortunately, this uptick was short-lived as the number of transactions dropped by over 88% toward the end of June.
First Four Months
Despite the fluctuations, Runes recorded an impressive 15 million transactions in its first four months. This staggering number demonstrated the protocol’s potential for longevity and success on the Bitcoin network.
Decline in Investor Interest
However, as we move into July, the Runes protocol saw a decline in popularity. The protocol’s share of transactions fell under 9% on average, indicating a decrease in investor interest in Bitcoin-based non-fungible tokens (NFTs).
Fees and Resurgence
By August, the protocol had generated over $160 million in fees and reached an impressive 15.6 million NFT transactions. The brief resurgence seen in August was a positive sign for Runes, with Aug. 23 recording 255,000 transactions.
Decline Continues
Unfortunately, the run of good fortune did not last as the protocol’s transactions dropped again in September and have struggled to reach their previous highs throughout the last quarter of 2024.
December Decline
In December, Runes’ transaction share in Bitcoin continued to decline. The protocol had a transaction share of less than 10% throughout the month, except for Christmas Day when it briefly reached 19.9%.
Broader NFT Decline
The decline in interest in Bitcoin Runes comes amid a broader decrease in interest in NFTs as a whole. In 2024, NFTs saw a seven-month downturn before briefly recovering in November and December.
Lowest Point
NFT sales volumes hit their lowest point in September when monthly sales dropped below $300 million for the first time since 2021.
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