Bitcoin, the cryptocurrency once thought to be just digital gold, is now experiencing an unprecedented transformation. Recently, a series of emerging meme tokens have triggered a sharp rise in transaction fees on the Bitcoin network, reaching a staggering $82 million. The appeal of these digital assets reflects the success of similar tokens on other blockchains, such as Ethereum's PEPE and Solana's WIF, which have performed very well this year.
The popularity of these emoticon tokens has even caused the income of miners to soar by 75%. What is the reason behind this? It turns out that all this surge in activity coincides with Bitcoin’s latest halving event. The halving cuts into miners’ primary income, forcing them to rely more on transaction fees. Despite the reduction in subsidies, the craze surrounding the Bitcoin meme coin has significantly increased miners' income, accounting for approximately 75% of their total revenue. According to reports, total mining revenue was paid in the form of 1,675 Bitcoins, which is approximately $109 million at current exchange rates.
However, as the initial excitement fades, mining revenue has begun to decline from a two-year high, indicating potential challenges for miners who rely on these fees. So, in the face of such challenges, where will Bitcoin go?
At this critical moment, the Rune Protocol, designed by developer Casey Rodarmor, was born. The Rune Protocol supports the creation of unique tokens, which enhances its utility. Rodarmor prefers to use the term "etching" rather than "minting" to more accurately describe the process of creating runes. This innovative solution is touted as a way to solve the problem of reduced miner income and is scheduled to be launched at the same time as the halving to bootstrap on-chain activity.
Meanwhile, Bitcoin is trading above $65,000, up 2.9% in the past 24 hours, according to Coingecko. Compared to previous cycles, the short-term price action following Bitcoin’s halving is not uncommon. Historical data shows that volatility and price swings leading up to the once-in-four-year event are followed by a parabolic run for Bitcoin in the medium to long term. However, previous growth has almost never been in a straight line.
While BTC showed a small uptick after the halving, protocols built around crypto’s largest blockchain saw higher growth over the past 24 hours and the past week. Of the five BTC L2 solutions categorized by CoinGecko, three tokens stand out, with a combined value of over $4 billion.
In this era full of challenges and opportunities, how will the future of Bitcoin develop? Let us wait and see.
