Bitcoin Runes: Reigning Supreme in BTC Transactions

Bitcoin Runes has reclaimed its position as the leading cryptocurrency within the Bitcoin network by surpassing Bitcoin (BTC), Ordinals, and BRC-20 in terms of daily transactions. The Runes protocol, which was launched on April 20, aims to enhance efficiency on BRC-20, an experimental standard for fungible tokens on the Bitcoin blockchain. According to data from Dune Analytics, Runes-related transactions accounted for the majority of transactions on the Bitcoin network until April 24. On April 23, Runes boasted the highest transaction share at 81.3%, while BTC’s transaction share dropped to 18.15%, and Ordinals and BRC-20 accounted for 0.1% each.

After April 23, Runes transactions experienced a consistent decline for the next nine days until March 2. From March 3 onwards, there was a notable recovery in the number of Runes transactions. On March 4 and 5, Runes regained a transaction share of over 60%. Although the surge in transactions unintentionally led to increased network fees, this trend proved beneficial for Bitcoin miners. The Runes protocol generated 2,253 BTC in fees for the mining community within a span of 16 days. Since the Bitcoin halving, miners’ earnings had significantly decreased, making the rise in fees a welcome development.

In order to maintain profitability, miners have opted to upgrade their existing mining equipment with more efficient rigs. This upgrade allows them to reduce operating costs, enhance performance, and ultimately increase profitability. Bitfarms, a Bitcoin mining firm, allocated $240 million for the upgrade of its technology stack. This investment is expected to triple Bitfarms’ hash rate to 21 exahashes per second (EH/s). Bitfarms decided to sell almost all of the Bitcoin it mined in the past two months, as it aims to reinvest the proceeds into expanding its mining fleet.

As the demand for Bitcoin Runes continues to rise, it remains to be seen whether it will maintain its top position within the Bitcoin network. For now, this cryptocurrency has established its dominance by surpassing its competitors in terms of daily transactions. Miners, who have experienced a decline in earnings, have benefited from the increased network fees. To ensure profitability, miners are upgrading their mining equipment, with Bitfarms investing a significant amount in improving its technology stack. With these developments, the cryptocurrency market continues to evolve and adapt to changing circumstances.