Runes generate over $135 million in fees in first week on Bitcoin network

The Runes token standard was recently launched on the Bitcoin BTC +0.60% network and has generated over 2129 bitcoin ($135 million) in transaction fees within its first week.

Runes utilizes Bitcoin’s UTXO model and the OP_RETURN opcode to offer a more efficient tokenization solution for the network than the BRC20 standard (based on the Ordinals protocols). It allows users to mint tokens on top of Bitcoin, which are generally memecoins.

The Runes system was invented by a developer named Casey Rodarmor, who also conceptualized the Ordinals protocol in early 2023.

The launch of Runes came with the fourth Bitcoin halving, occurring at block height 840,000. The protocol has quickly become a major contributor to network transaction and fee activity. According to a Dune dashboard by cryptokoryo, Runes-related activity comprised 45% of Bitcoin transactions on Thursday, whereas regular transactions accounted for 51%. Furthermore, the network has processed over 3 million transactions involving Runes since its introduction.

Data from the Runes trading protocol, Unisat, reveals that around 11,000 Runes tokens have been minted to date, which has driven the demand for network blockspace and, subsequently, network fees. On April 25, the average transaction fee remained around $40, markedly higher than the $5 seen at the start of April, according to The Block's data dashboard.

The introduction of Runes also coincided with an increase in Bitcoin’s mining difficulty, which rose by 2% on Wednesday to hit a new all-time high. This adjustment marks the first increase in mining difficulty immediately following a halving event, signaling heightened miner engagement.

Among the tokens under the Runes standard, the most notable is DOG, which has the highest market cap among Runes at over $400 million, according to Magic Eden data. DOG is related to the Runestone NFT collection from Bitcoin Ordinals explorer Ord.io co-founder Leonidas. Additional tokens that have drawn attention in the Runes ecosystem include RSIC Genesis, Satoshi Nakamoto, Wanko Manko and Bitcoin Pepe Matrix.