Bitcoin transaction fees hit multi-month all-time highs

Bitcoin witnessed record fees due to the frenzy of activity of the new rune protocol, which was launched in its fourth halving event.

After months of inactivity, debris activity is experiencing a remarkable resurgence.

Bitcoin Runes returns to the stages

The latest data collected by IntoTheBlock shows that the number of Bitcoin Runes transfers has tripled since hitting lows in August. This renewed interest has had a direct impact on Bitcoin transaction fees, which have increased by more than 32% this week, marking their highest levels since August.

The increase in fees points to increased demand for block space, benefiting Bitcoin miners, who collectively earned $5 million in transaction fees over the past week, the cryptoanalytics platform reports.

Decentralized capital markets protocol Alkimiya also weighed in on the impact of recent Runes activity on the Bitcoin network, noting that Runes transfers have surged over the past week, taking up more than 50% of the space in blockchain block.

This increase in activity has led to a noticeable increase in rates, with the average BTC rate increasing from 7.944 sat/vB to 13.111 sat/vB, an increase of approximately 65% ​​in just one day. Alkimiya noted four separate peaks in rates, with the highest average rate reaching 50 sat/vB, all related to four different Rune mints.

The hype fades, but the use continues

The Runes protocol debuted at block 840,000 alongside the Bitcoin halving in April of this year, with the aim of boosting activity on the chain. Created by Casey Rodarmor, the mind behind Ordinals, Runes allows users to mint their own tokens on the Bitcoin network. This protocol was designed to improve upon the BRC-20 standard, known for its expensive token creation and management processes.

In Bitcoin’s half-day, Runes generated more than $62 million in revenue and contributed to a total daily transaction fee increase of $81 million, with the average fee per transaction reaching an all-time high of historic $128. During the first week after the protocol was launched, rune-driven transactions dominated the Bitcoin network. However, the activity of the Runes protocol decreased significantly in the following weeks, although the use persisted.

In September, Bitcoin Runes surpassed 50 million registrations, a figure achieved in less than five months after its launch.

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