Runes Protocol Surpasses 50M Minted Tokens Milestone on the Bitcoin Network

The Runes protocol has hit a major milestone, surpassing 50 million inscriptions less than five months after its launch on the Bitcoin network.

The Runes protocol, which enables the creation of fungible tokens on the Bitcoin network, has achieved a significant milestone by surpassing 50 million minted tokens within five months of its launch.

According to a tweet by IntoTheBlock, a market intelligence platform, the achievement marks continued usage despite the initial hype fading.

Runes protocol surpasses 50M minted tokens

Launched in April on block 840,000 during the last Bitcoin halving, Runes is a Bitcoin token standard that allows users to create their own tokens on the network, a capability that was not available years ago. The protocol was developed to enhance the already-existing BRC-20 standard, which is known for its high costs associated with creating and managing tokens.

Bitcoin users can create runes by utilizing the network’s unspent transaction output (UTXO) model and the OP_RETURN opcode. The process of creating a rune involves setting its properties, which become immutable once the creation is complete. After etching the rune, the user can claim it through minting.

According to IntoTheBlock, around 500,000 Runes are being minted by Bitcoin users on a daily basis. This sustained activity, coupled with the initial hype, has contributed to the protocol achieving over 50 million minted tokens within five months.

A decline in activity and revenue

Rodarmor and his team launched Runes during the last Bitcoin halving in April on block 840,000. Following the protocol’s activation, investors engaged in a frenzy, which led to increased transaction fees and record-high earnings for Bitcoin miners.

Runes alone accounted for $62.4 million in revenues collected on the Bitcoin halving day, while the total daily transaction fees reached a record high of $81 million, with the average fee per transaction surging to a record high of $128.

Throughout the first week after the protocol’s launch, the high activity continued, with miners receiving higher earnings due to Rune-related transactions dominating the Bitcoin network. However, in the following weeks, the Runes protocol activity fell significantly, leading to a decline in revenue and transaction fees plummeting to roughly $1 million.

Since then, activity on the Runes protocol has remained low. As of September 4, according to data on Dune Analytics, Runes accounted for 3.2% of the total Bitcoin transactions, contrasting sharply with the 81.3% transaction share observed on April 23.

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