Transactions on the Runes protocol on the Bitcoin network struggled to reach previous highs in December, marking a sharp decline from the previous most dominant months in 2024.
Since Runes’ launch, the protocol has consistently had the highest bandwidth on the Bitcoin network. On April 23, Runes had over 753,000 transactions, eclipsing the Ordinals protocol, BRC-20s, and Bitcoin (BTC). The record represents over 81% of all transactions on the Bitcoin blockchain.
Number of transactions on Bitcoin's Runes protocol. Source: Dune
Runes’ momentum continued through early May, but it plummeted again mid-month. The protocol also saw a sharp increase in transactions throughout June. However, the protocol struggled to maintain interest, dropping more than 88% by the end of the month.
Runes has seen over 15 million transactions in its first 4 months.
In July, the Runes protocol also saw a sharp drop in popularity. The protocol’s share of transactions dropped below 9% on average, indicating a decline in investor interest in Bitcoin-based non-fungible tokens (NFTs).
Despite this, the protocol has shown potential for longevity after recording over 15 million transactions in its first four months. In August, the protocol generated over $160 million in fees, reaching 15.6 million NFT transactions. The protocol also saw a brief resurgence during the month, with August 23 recording 255,000 transactions.
However, Runes protocol transactions dropped again in September and struggled to reach previous highs throughout the last quarter of 2024.
Runes recorded less than a 10% share of Bitcoin transactions throughout December.
In December, Runes’ share of Bitcoin transactions continued to decline. The protocol had a transaction share of less than 10% throughout the month, except on Christmas Day, when the protocol had a 19.9% share of Bitcoin transactions.
Bitcoin transaction share by type. Source: Dune
The drop in interest in Bitcoin Runes comes amid a broader decline in interest in NFTs. In 2024, NFTs saw a seven-month decline before briefly recovering in November and December. NFTs hit their lowest point in September, when monthly sales volumes of digital collectibles fell below $300 million for the first time since 2021.
