Growth in Bitcoin Transactions Spearheaded by Runes Protocol Dominance

Bitcoin transactions have seen a significant increase following the halving event, with a considerable portion of this demand stemming from the Runes protocol. Since its inception, Runes has been recording at least 150,000 transactions daily, surpassing BRC-20, which now sees less than 10,000 transactions a day.
The Runes token standard has outperformed both BRC-20 and Ordinals in terms of transaction volume, with Dune Analytics reporting an average of 150,000 transactions per day for Runes since April 20. At its peak, Runes saw 753,584 transactions in a single day on April 23. Runes now accounts for about 40% of Bitcoin transactions, overshadowing BRC-20 and Ordinals, thanks to its more efficient process for creating fungible tokens on the Bitcoin network.
BRC-20 tokens and Ordinals have faced criticism for congesting the network and causing fee increases, with BRC-20 tokens being particularly complex and space-consuming on the blockchain.
Casey Rodarmor, the creator of both Bitcoin Ordinals and Runes, highlighted that the success of Runes could potentially divert liquidity, technology, and attention from other cryptocurrencies back to Bitcoin, despite the inherent risks in enabling the creation of numerous tokens on the Bitcoin network.
The introduction of Runes, BRC-20, and Ordinals has transformed Bitcoin into a platform for not only store of value but also for creative expression and complex financial instruments. Runes, which launched on April 20, coinciding with the fourth Bitcoin halving, has enhanced the efficiency of token creation on the Bitcoin network by enabling off-chain transactions, which reduces congestion and allows for faster, more cost-effective transactions.
Both BRC-20 and Runes pay fees in BTC for token creation, with BRC-20 focusing on affordability, speed, and accessibility, and bringing programmability to the Bitcoin network. Ordinals, introduced in January 2023, facilitated the creation of NFT-like inscriptions, although it faced challenges with high fees.
Social media and investment tools have shown a growing interest in Runes, with Lunarcrush recording 53,008 interactions for Runes, compared to 37,169 for BRC-20 and 34,299 for Ordinals.
As the Bitcoin ecosystem continues to evolve, the surge in transactions and the development of new protocols like Runes highlight the innovative potential of Bitcoin beyond its original design as a digital currency.