Bitcoin Runes' Momentum Fades to Near Zero by End of 2024

The Runes protocol, which launched on the Bitcoin network earlier this year, has experienced a significant decline in transactions over the past few months. After reaching its peak in April, with over 753,000 transactions, the protocol’s momentum slowed down in May and continued to drop throughout June, July, and September.

Table of Contents

A Brief Overview of the Runes Protocol

The Runes protocol was launched on the Bitcoin network, allowing users to create non-fungible tokens (NFTs) directly on the blockchain. The protocol quickly gained popularity, with its transaction count exceeding 15 million in just four months. By August, the protocol had generated over $160 million in fees and recorded more than 15.6 million NFT transactions.

Decline in Transactions

However, despite its initial success, the Runes protocol has struggled to maintain its momentum throughout the year. In May, the protocol’s transaction count began to decline, dropping by over 88% towards the end of the month. This trend continued into June, with the protocol’s share of transactions falling under 9% on average.

July and August: A Brief Resurgence

Although the protocol experienced a significant decline in popularity in July, it showed signs of recovery in August. The protocol recorded over 255,000 transactions on Aug. 23, marking a brief resurgence in its momentum. However, this increase was short-lived, and the protocol’s transaction count dropped again in September.

December: A Continued Decline

The decline in interest in Bitcoin Runes continued throughout December, with the protocol’s transaction share falling below 10% for most of the month. On Christmas Day, however, the protocol saw a brief spike in transactions, accounting for 19.9% of all Bitcoin transactions.

A Broader Decline in Interest in NFTs

The decline in interest in Bitcoin Runes is not an isolated incident. The broader market has seen a significant decrease in interest in NFTs over the past year. In 2024, NFT sales volumes dropped to their lowest point since 2021, with monthly sales volumes falling below $300 million in September.

Conclusion

The decline in transactions on the Runes protocol is a concerning trend for investors and users alike. Despite its initial success, the protocol has struggled to maintain its momentum throughout the year. The broader decline in interest in NFTs also suggests that the market may be experiencing a period of stagnation.

Table 1: Runes Protocol Transaction Share

| Month | Average Transaction Share |
| — | — |
| April | 81.2% |
| May | 14.5% |
| June | 9.3% |
| July | 7.5% |
| August | 10.2% |
| September | 8.1% |
| December (average) | 6.8% |