Runes transaction share on the Bitcoin network has plunged to new lows, declining from its dominant position earlier this year.
At the same time, the Bitcoin Rune protocol also recorded minimal daily fees, raising concerns among market participants.
Ongoing speculation exists about whether the increased interest in meme coins and AI agents is responsible for dampening Bitcoin Runes.
Bitcoin Runes Latest Transaction Stat
According to recent data, activity on the Runes protocol has declined substantially since its launch in April. The data from December 25 shows a drop to the lowest levels of new mints and new wallet interactions.
Notably, Rune transactions account for only 1.67% of daily Bitcoin transactions. This contrasts sharply with the period between April and November when Runes accounted for more than half of daily Bitcoin transactions.
This decline represents a cooling of the initial excitement surrounding the Runes protocol, implying that the novelty is wearing off among users. The drop in activity also corresponds to a fall in transaction fees generated by the protocol.
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Daily fees for Runes transactions have remained below $250,000, indicating low network activity relative to past periods.
For instance, daily fees for Bitcoin reached $62.55 million on April 20, 2024. This trend suggests a potential stabilization following the initial high demand for block space caused by Runes transactions.
What Shifted the Relevance of Runes?
For context, Runes provides a new technological leap by supporting several token standards on the Bitcoin blockchain using the UTXO paradigm and the OP_RETURN opcode. This new technique offers a more efficient tokenization solution than the previous BRC20 standard, primarily aiding memecoin trade.
However, the recent decline in Bitcoin Runes points to a shift in investor focus amid changing dynamics in the broader market. Sectors like the memecoins and Artificial Intelligence (AI) agents have captured a large market share.
In particular, meme coins have transformed cryptocurrency by combining humor and financial innovation. Meme coins like Dogecoin (DOGE), Dogwifhat (WIF), and FLOKI are increasingly becoming investors’ favorites.
Additionally, AI agents have taken center stage in the crypto market for the last few months. AI agents, described as autonomous programs designed to perform specific tasks, are proliferating by the thousands.
Investors’ increasing interest in these sectors potentially reduces interest in Bitcoin Runes protocols.
Bitcoin ETF, BTC Price, and Future Projections
Despite the declining interest in Runes, Bitcoin recently celebrated a milestone, hitting a new all-time high of $108,202. This underscores the network’s appeal and utility.
The price has since declined and currently trades at $96,102. However, history suggests that emphasis will shift back to ecosystem projects like Runes and Ordinals when Bitcoin’s price stabilize.
Meanwhile, the spot Bitcoin Exchange-Traded Funds continue to see substantial outflows. According to Farside Investors data, on December 25, outflows from the Bitcoin ETFs amounted to $338.4 million.
This marks the fourth consecutive day of outflows from these investment instruments. BlacRock’s IBIT recorded the largest outflows, which amounted to $188.7 million.
Fidelity’s FBTC came second with $83.2 million, followed by Ark Invest’s ARKB with $75 million.
Despite the ongoing market volatility, market analysts have forecasted an imminent rebound for BTC.
Fundstrat’s Tom Lee predicted that Bitcoin could surge to $250,000 in 2025. In a more bullish forecast, Bitcoin maximalist Max Keiser said BTC could soar to $2,200,000 in the long term.
