Bitcoin Transaction Fees Drop Significantly Post-Halving: Analysis and Impact on Runes Protocol

The cost of sending transactions on Bitcoin has seen a significant decline of nearly 10 times after an initial spike following the BTC halving last week. According to on-chain analytics provider Mempool.space, BTC gas fees for low-priority transactions are now around $9.51, medium-priority actions cost $10.07, and high-priority transactions are priced at $10.44 per data.

This drop in transaction fees comes after a period where participants had to pay over $146 for medium-priority transactions and more than $170 for high-priority sends. The decrease in fees is seen as a positive development for users of the cryptocurrency network.

Despite the halving event, the price of BTC has remained relatively stable, with a 2.4% gain in the past seven days to trade at around $66,000. The halving event was designed to reduce block rewards by 50%, leading to concerns about reduced revenue for miners.

One solution that was proposed to address this issue was Casey Rodarmor’s Runes protocol, which was set to launch simultaneously with the halving. The protocol enables users to create UTXO-based fungible assets on BTC’s blockchain, with the aim of boosting decentralized finance (defi) on the network.

However, post-halving results for Bitcoin Runes have been lackluster, with the Runestone NFT collection seeing a nearly 50% drop in its floor price value. The average cost of a Runestone has fallen from 0.073 BTC to 0.035 BTC, indicating reduced interest in the concept after the initial hype.

Overall, the decline in transaction fees on Bitcoin and the mixed results for the Bitcoin Runes protocol highlight the ongoing evolution and challenges facing the cryptocurrency ecosystem. Stay updated on the latest developments by following us on Google News.