Runes transaction share on the Bitcoin network drops to new lows

Runes transaction share on the Bitcoin network has dropped to new lows, reaching just 1.67% of daily transactions, marking a significant decline from its dominant position earlier in the year.

This represents a stark contrast to the period between April and November when Runes often consisted of over 50% of daily Bitcoin transactions. Daily fees for Runes transactions have remained below $250,000, indicating minimal network activity compared to previous periods.

The decline in Runes activity coincides with broader market dynamics and shifting investor focus:

• Bitcoin price volatility has drawn attention away from experimental Bitcoin-based protocols like Runes and Ordinals, which are often viewed as higher-risk applications.
• Other sectors, such as AI agents, memecoins and Ethereum NFTs, have captured market mindshare, potentially contributing to reduced interest in Bitcoin-based token protocols.

The data suggests a potential cooling of the Runes ecosystem. The dramatic drop from a network share of over 50% to below 10% indicates a significant shift in Bitcoin network usage patterns. This decline may reflect a broader market trend where speculative interest has rotated into other cryptocurrency sectors.

However, as Bitcoin prices look to stabilize, history suggests that attention will return to ecosystem projects such as runes and ordinals, making it important to monitor how these verticals evolve.

This is an excerpt from The Block's Data & Insights newsletter. Dig into the numbers making up the industry's most thought-provoking trends.