The Runes protocol has achieved a significant milestone by surpassing 50 million inscriptions just under five months after its debut on the Bitcoin network.
According to market intelligence firm IntoTheBlock, this achievement reflects sustained usage even as the initial excitement has waned.
Runes Surpass 50 Million Minted Tokens
Runes, a Bitcoin token standard developed by Ordinals creator Casey Rodarmor, enables the creation of fungible tokens on Bitcoin—a capability that was previously unavailable. This protocol builds on the BRC-20 standard, which was known for its expensive token creation and management processes.
Users can create Runes by utilizing Bitcoin’s unspent transaction output (UTXO) model and the OP_RETURN opcode. The creation process, known as “etching,” involves defining the token’s properties, which then become immutable. After etching, users can claim their tokens through minting.
IntoTheBlock reports that Bitcoin users are minting about 500,000 Runes daily. This consistent activity, coupled with the initial surge of interest, has led to the protocol achieving over 50 million minted tokens within just five months.
Decline in Activity and Revenue
The Runes protocol was launched during the last Bitcoin halving in April, beginning on block 840,000. The launch prompted a surge in activity, significantly raising transaction fees and generating record earnings for Bitcoin miners.
On the day of the halving, Runes transactions alone contributed $62.4 million in revenue, while the total daily transaction fees soared to $81 million, with the average fee per transaction hitting a record high of $128.
The first week post-launch saw continued high activity, with miners enjoying increased earnings due to Rune-related transactions. However, this activity sharply declined in the subsequent weeks, causing a drop in revenue and transaction fees to approximately $1 million.
Since then, activity on the Runes protocol has remained low. Data from Dune Analytics indicates that by September 4, Runes accounted for just 3.2% of total Bitcoin transactions, a sharp decrease from the 81.3% transaction share recorded on April 23.
