The Bitcoin Runes protocol, which achieved impressive transaction volumes at the beginning of 2024, lost its strength by the end of the year. While more than 750,000 daily transactions were recorded on April 23, this number dropped to less than 100,000 in December.

A promising start with record numbers

After its launch, the Runes protocol dominated the Bitcoin blockchain with unprecedented figures. At its peak on April 23, more than 81% of all Bitcoin transactions were attributed to Runes. This surpassed other protocols such as Ordinals and BRC-20. In the first four months of 2024, Runes generated over 15 million transactions and brought in $160 million in transaction fees.

Declining popularity in the second half of the year

Although the protocol started strong, its momentum suddenly dropped in May. Despite a brief recovery in June, where transaction volumes spiked again, activity declined significantly in the following months. By July, Runes' share of Bitcoin transactions had fallen to an average of less than 9%, indicating waning interest in Bitcoin-based non-fungible tokens (NFTs).

In August, there was a momentary revival, with a peak of 255,000 transactions on August 23. However, the protocol struggled to maintain this momentum, and by September, transaction volumes had dropped again. During the final quarter of 2024, Runes remained far below its previous highs.

Less than 10% of all Bitcoin transactions in December

In December, Runes‘ share of Bitcoin transactions declined further, except for a small increase around Christmas, when the protocol accounted for 19.9% of all Bitcoin transactions. For the rest of the month, however, its share remained below 10%.

A broader trend of declining interest

The decline in the popularity of Bitcoin Runes coincides with a broader decrease in interest in NFTs. In 2024, the NFT market experienced a seven-month downturn, hitting its lowest point in September when monthly sales volumes for digital collectibles fell below $300 million for the first time since 2021.

Bitcoin Runes started with great promise and impressive figures, but its decline highlights the dynamic and sometimes unpredictable nature of blockchain innovations. As the market continues to evolve, it remains essential to prioritize safety, reliability, and transparency for all users.

Disclaimer: This article is for informational purposes only. Always ensure you are well-informed before making any financial decisions.