TechFlow news — On August 13, according to The Block, the Runes protocol has drawn significant attention since Bitcoin's halving in April, having generated $62.55 million in fee revenue on its first day. However, its share of network fees has recently dropped to 8.37%, nearing a historic low of 2.16%, a stark contrast to its strong initial performance.
Although the Runes protocol accounts for approximately 50% of transaction volume on the Bitcoin network, this level of usage has not effectively translated into proportional fee revenue. In July, the Bitcoin network processed 19.51 million transactions, with Runes contributing nearly 10 million. Yet, over 99% of Runes transactions were minting activities. This singular use case indicates that while Runes achieved some market adoption initially, it struggles to gain sufficient liquidity support in secondary markets.
The decline of the Runes protocol can be partly attributed to broader market conditions, as well as constrained by inherent limitations within Bitcoin's infrastructure. From the early stages, suboptimal user experience on the Bitcoin network has negatively impacted Runes' transaction volume.
