Godfrey Benjamin
With spot Bitcoin ETFs losing their hype and impacting BTC’s flow, the transaction fee of Rune, a standard for token issuance directly on the network, has seen a significant dip.
Rune Transaction Fees Slump Amid Declining Interest
According to crypto analytics service provider Glassnode, the transactions registered on the Rune Protocol after the Bitcoin halving event held a few days ago have a total of $117 million in revenue fees.
Specifically, the protocol collected $62.4 million in revenue fees on the day of halving which coincided with its launch date. It has been nine days since the halving event, and Rune transaction fees have seen a sharp decline.
Glassnode claimed that the “stark decline in revenue can be noted with the current Fees from Rune TXs residing at a value of $1.03M.” Compared to other transactions, Rune transactions have undergone a notable reduction, indicating how fast its hype fizzled out. It appears that investors have grown a reduced appetite for the crypto project amid declining market pricing.
Following the #Bitcoin Halving, Rune Transactions have accrued a total of $117M in revenue fees, with a staggering $62.4M collected on the day of the halving.
However, a stark decline in revenue can be noted with the current Fees from Rune TXs residing at a value of $1.03M. pic.twitter.com/RpDnn4r88n
— glassnode (@glassnode) April 29, 2024
It is unclear what could have led to the plunge in Rune transaction fee but it may also be a silver lining for other long-term digital asset projects.
Are Investors Turning Away from Rune Protocol?
From the current market outlook, investors appear to likely be switching their attention from Rune Protocol to Bitcoin and its spot Bitcoin ETFs that have been experiencing severe outflows in the last few days. Grayscale has seen huge outflows for nine consecutive weeks while BlackRock’s IBIT broke its inflow trend a while back as it recorded $0 inflow.
Last week Friday, the total outflows across all ten spot Bitcoin ETFs stood at a staggering $217 million with GBTC leading the pack at $140 million in outflows.
Meanwhile, when the Rune Protocol launched a few days back alongside the halving, it caused a frenzy that pushed Bitcoin to see a strong surge in its transaction fee providing miners with instant relief. The average BTC transaction fee per block surged to as high as 18.62 BTC while the average revenue per block surged to 21.74 BTC.
Owing to this development, the launch of the Rune Protocol was described as being beneficial to the Bitcoin miners who have been minting huge sums in transaction fees.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
