The Runes protocol’s performance on the Bitcoin network experienced a significant decline in December 2024. After reaching new heights earlier in the year, the protocol’s transaction numbers plummeted, falling short of its previous records.
Early Success and Dominance
At launch, the Runes protocol consistently held the highest bandwidth on the Bitcoin network. On April 23, it recorded over 753,000 transactions, surpassing Ordinals, BRC-20s, and even Bitcoin itself. This achievement accounted for more than 81% of all transactions in the Bitcoin blockchain.
Transaction Numbers
According to Dune data, the number of transactions on the Runes protocol fluctuated throughout the year:
- April: Over 753,000 transactions
- May (start): Continued momentum
- May (middle): Transactions dropped significantly
- June: Brief resurgence with over 15 million transactions in the first four months
- July: Decline in popularity, with an average transaction share of less than 9%
- August: Brief resurgence on Aug. 23, with 255,000 transactions
- September and onwards: Struggled to reach previous highs
December’s Decline
Despite the brief resurgences, the Runes protocol experienced a decline in interest in December 2024. The transaction share of less than 10% throughout the month, except for Christmas Day when it reached 19.9%.
NFT Market Downturn
The decline in interest in Bitcoin Runes coincided with a broader decrease in NFT sales volumes. In 2024, NFTs experienced a seven-month downturn before briefly recovering in November and December.
Key Statistics
- Monthly sales volumes for digital collectibles dropped below $300 million for the first time since 2021
- NFT sales volumes hit their lowest point in September
Conclusion
The Runes protocol’s performance on the Bitcoin network has been a subject of interest throughout 2024. Although it showed potential for longevity after recording over 15 million transactions in its first four months, the decline in interest and transaction numbers suggests a shift in investor focus.
As the NFT market continues to evolve, it will be essential to monitor the Runes protocol’s performance and adapt to any changes in investor sentiment.
Related Articles
- Bitcoin Runes racks up over 2,500 BTC in fees under 2 months
- 68% of Runes are in the red — Are they really an upgrade for Bitcoin?
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