Bitcoin miners have observed a dramatic reduction in the number of Runes mined daily, with figures plummeting below 250 over the past six days. On May 13, only 157 Runes were mined, which marks a staggering 99% decline from the peak in late April. Initially, the period between April 26-30 saw an average of 14,700 new Runes mined daily, with a record of 23,061 Runes on April 26, as reported by Dune Analytics.
What’s Happening with Runes?
Runes, which were introduced on April 20 during the fourth Bitcoin halving, gained significant attention as a fresh token standard. This protocol enables memecoin and NFT enthusiasts to trade and transfer digital content such as artworks, images, sounds, and videos on the Bitcoin network.
Initially, Runes provided a financial lifeline for Bitcoin miners, who were grappling with the latest halving that slashed the block subsidy to 3.125 Bitcoin, worth about $196,800 at current prices. However, the 157 Runes mined on May 13 only brought in $3,835 in transaction fees, drastically lower than the high earnings in late April.
Since its launch, Runes has generated $4.5 million in transaction fees for Bitcoin miners, averaging approximately $189,000 per day. Over 91,200 Runes have been mined to date.
Notable Insights About Runes
Despite the fall in Runes mined, these transactions still dominate May’s Bitcoin transactions, especially on platforms like Magic Eden, OKX, Ordinals Wallet, and UniSat. Binance Research notes that Runes were created by Casey Rodarmor, the inventor of Ordinals, aimed at optimizing block space more efficiently than its competitor, BRC-20s.
Unlike BRC-20s, Runes are compatible with Bitcoin’s unspent transaction output (UTXO) model, allowing UTXOs to hold various NFTs, including Runes. However, in a recent interview, Rodarmor highlighted that Runes are designed more for entertainment within the Bitcoin ecosystem rather than as a serious financial instrument.
Key Takeaways for Users
- Bitcoin miners’ income from Runes has significantly decreased.
- Runes transactions still dominate May’s Bitcoin network activities.
- Runes leverage Bitcoin’s UTXO model for trading NFTs.
In conclusion, the introduction of Runes provided a temporary income boost for Bitcoin miners, but the recent decline in Runes mined has substantially reduced their earnings. Despite this, Runes remain a popular transaction type on the Bitcoin network, particularly on specific marketplaces. The future of Runes seems oriented towards digital art and entertainment rather than financial systems.