Here’s Why Bitcoin Runes Could Have 4X Impact on Price Than Halving

Bitcoin‘s new protocol, Runes, designed for creating tokens (such as memecoins) on the pioneering blockchain, has caused a stir and continued to overshadow the recent halving event. 

Runes allows users to create fungible tokens on top of Bitcoin, potentially sparking a surge in speculation and driving transaction fees even higher. 

While Bitcoin fees have risen due to the popularity of Ordinals NFTs and memecoins like PUPS, the launch of Runes has skyrocketed fees. 

$80M in Daily Fees 

According to on-chain analysis from IntoTheBlock, Bitcoin daily fees reached an all-time high (ATH) of over $80 million on April 20 (the same day that halving completed and Runes launched), surpassing the previous record set in December 2017.

The average transaction fee on that same day spiked to a whopping $128, overtaking the previous $30 peak during the Ordinals craze.

Miners Reap Unexpected Windfall

Surprisingly, miners are benefiting more than anticipated, thanks to Runes. Despite the halving cutting mining block rewards in half, transaction fees due to Runes activity have surged by 1200%, leading to miners’ record revenue exceeding $100 million on April 20. While Wall Street analysts predicted a bearish impact of the halving on mining stocks, their projections failed to account for Runes’ launch.

Meanwhile, IntoTheBlock analysis pointed out that new addresses on Bitcoin reached a two-year low. 

“This suggests most of the Runes-related activity is coming from crypto degens. It will likely take some time until retail begins participating,” Lucas Outumuro, a senior analyst at IntoTheBlock, said.

Launched just 48 hours ago, Runes has demonstrably impacted Bitcoin’s ecosystem. However, whether this momentum continues in the long run remains uncertain. For now, it has overshadowed the halving and had a more significant impact on the ecosystem.