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25 April, 2024

Despite Runes' Transaction Dominance, Bitcoin Miners See Continued Revenue Drop

According to recent data, transactions linked to the Runes protocol have been notably high in block utilization since its implementation on April 19. Figures from April 23 show that transactions involving Runes accounted for 81% of block usage on that day. In contrast, traditional financial activities constituted only 18.8% of the transactions processed.

As Runes Take Over Transactions, Bitcoin Miners Still Face Persistent Revenue Challenges

Since the introduction of Ordinal inscriptions and BRC20s at the beginning of last year, these elements have increasingly used block space. Recently, the Runes protocol has started to dominate this arena. As of today, April 25, 2024, Runes-based transactions account for 43% of the network’s activity. Yesterday, this figure was slightly higher at just over 51%, and two days ago, on April 23, it reached 81%.

Bitcoin network’s share of transactions via Dune Analytics.

Meanwhile, Ordinals and BRC20 transactions have maintained a steady presence, consuming a modest 1% of transactions in recent days. While transaction fees were initially lower two days following the halving event on April 19, onchain costs have seen periodic increases during peak hours each day since. For example, the average transfer fee was slightly above $24 on April 22, and by April 28, it had risen to $28.

Bitcoin’s hashprice as of April 25, 2024.

Despite these occasional spikes in fees during busy periods, overall onchain costs have generally trended downward since the halving. The value of 1 petahash per second (PH/s) of hashing power per day, known as the hashprice, has significantly declined. From March 25 to April 18, the hashprice remained above the $100 mark, reaching a high of $108.

However, as of 6 a.m. Eastern Time on April 25, 2024, it has fallen to just over $58 per petahash. Although there was a slight decrease in the hashrate from 655 exahash per second (EH/s) to 621 EH/s by April 22, it has stabilized at 644 EH/s today. Thus, despite increased activity from Runes protocol transfers, Ordinals, and BRC20s, miners are currently earning significantly less revenue than before block 840,000.