Transactions on the Runes protocol on the Bitcoin network struggled to reach previous highs in December, marking a sharp decline from its previous more dominant months in 2024.
Since the Runes launch, the protocol 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 accounts for more than 81% of all transactions in the Bitcoin blockchain.
Number of transactions in the Bitcoin Runes protocol. Source: Dune
Runes’ momentum continued through the start of May but tanked again in the middle of the month. The protocol also saw an intense increase in transactions throughout June. However, the protocol found it difficult to maintain interest, dropping by over 88% toward the end of the month.
Runes recorded over 15 million transactions in the first 4 months
In July, the Runes protocol also saw a sharp decline in popularity. The protocol’s share of transactions fell under 9% on average, showing a decrease in investor interest in Bitcoin-based non-fungible tokens (NFTs).
Despite this, the protocol showed potential for longevity after recording more than 15 million transactions in its first four months. By 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 Aug. 23 recording 255,000 transactions.
However, the Runes protocol’s transactions dropped again in September and struggled to reach its previous highs throughout the last quarter of 2024.
Runes recorded less than 10% Bitcoin transactions share throughout December
In December, Runes’ transaction share in Bitcoin continued to decline. The protocol had a transaction share of less than 10% throughout the month, except for Christmas Day when the protocol had a 19.9% share in Bitcoin transactions.
Share of transactions in Bitcoin by type. Source: Dune
The decline in interest in Bitcoin Runes comes amid a broader decrease in interest in NFTs. In 2024, NFTs had a seven-month downturn before briefly recovering in November and December. NFTs hit their lowest point in September when monthly sales volumes for digital collectibles dropped below $300 million for the first time since 2021.
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