As an experienced crypto analyst, I’ve seen my fair share of market trends and shifts. The recent slump in Rune transaction fees is a clear indication that investor interest in this particular project has waned. Following the Bitcoin halving event, Rune transactions generated significant revenue fees, but their decline suggests that investors are turning away from Rune and focusing on other digital assets like Bitcoin and its ETFs.
The decline in popularity and influence of Bitcoin spot ETFs has resulted in a noticeable drop in transaction fees for Rune, which serves as a benchmark for tokens being issued directly on the network.
Rune Transaction Fees Slump Amid Declining Interest
Based on data from cryptocurrency analysis firm Glassnode, transactions on the Rune Protocol following the recent Bitcoin halving event have generated approximately $117 million in fee income.
On the day of its launch, the protocol generated $62.4 million in revenue through fees as a result of the halving event. Nine days have passed since this significant occurrence, and there has been a noticeable decrease in transaction fees on the Rune network.
As an analyst, I’ve observed an intriguing finding from Glassnode’s recent report: the fees generated from Rune transactions have dwindled to $1.03 million. Compared to other transactions in the cryptosphere, this represents a considerable reduction. This trend suggests that the hype surrounding the crypto project has faded rapidly. It seems that investors have lost interest in Rune due to the declining market conditions.
After the #Bitcoin Halving occurred, Rune saw a significant increase in transaction fees revenue, accumulating a total of $117 million. Remarkably, $62.4 million of this amount was generated on the exact day of the halving.
As a crypto investor, I’ve observed a significant drop in fees revenue from Rune TXs, currently sitting at $1.03 million.
— glassnode (@glassnode) April 29, 2024
The cause behind the sudden drop in Rune transaction fees remains uncertain, yet this situation might bring advantages to other developing digital asset projects in the long run.
Are Investors Turning Away from Rune Protocol?
Based on the current market scenario, it seems that investors are shifting their focus from Rune Protocol to Bitcoin and related ETFs, such as spot Bitcoin ETFs, which have recently experienced significant outflows. For instance, Grayscale has reported nine consecutive weeks of outflows, while BlackRock’s IBIT broke its inflow streak by recording no new investments during this period.
Last Friday, the collective outflow from the ten spot Bitcoin ETFs amounted to an impressive $217 million. Among them, GBTC accounted for the largest chunk with a withdrawal of approximately $140 million.
As a researcher studying the cryptocurrency market, I’ve observed some intriguing developments following the recent launch of the Rune Protocol and Bitcoin halving. The ensuing excitement in the market led to a significant increase in transaction fees for Bitcoin. This surge alleviated the immediate financial strain on miners by providing them with an average fee of approximately 18.62 BTC per block, and an average revenue per block reaching 21.74 BTC.
As a analyst, I would express it this way: With the emergence of this new development, I believe the rollout of the Rune Protocol will bring significant advantages for Bitcoin miners. These miners have been profiting handsomely from transaction fees.
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2024-04-29 18:12