In December 2024, the transactions on the Runes protocol on the Bitcoin network experienced a significant decline, dropping well below the highs reached during its more dominant months earlier in the year.
Background and Early Success
After the launch of the Runes protocol, it 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 accounted for more than 81% of all transactions in the Bitcoin blockchain.
Transaction Numbers
The number of transactions in the Bitcoin Runes protocol can be seen in the following chart:
| Month | Number of Transactions |
| — | — |
| April | 753,000 |
| May (start) | 1,200,000 |
| June (mid-month) | 250,000 |
| June (end-of-month) | 35,000 |
Runes’ Momentum and Decline
Despite the initial success of the Runes protocol, its momentum continued through the start of May but tanked in the middle of the month. The protocol then saw a big increase in transactions through most of June, but dropped by over 88% toward the end of the month.
Record-Breaking Transactions
The Runes protocol recorded over 15 million transactions in the first four months. This is an impressive feat considering it was one of the newer protocols on the Bitcoin network.
July and August: A Brief Resurgence
In July, the Runes protocol saw a 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). However, the protocol showed potential for longevity after recording more than 15 million transactions in its first four months.
By August, the protocol had generated over $160 million in fees, reaching 15.6 million NFT transactions. The protocol saw a brief resurgence during the month, with Aug. 23 recording 255,000 transactions.
September and Beyond: A Decline in Transactions
Then, the Runes protocol’s transactions dropped again in September and have struggled to reach their previous highs throughout the last quarter of 2024.
December: Continued Decline in Interest
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.
The Broader Market: A Decrease in NFT Interest
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.
Conclusion
The Runes protocol’s transaction numbers have seen significant fluctuations throughout 2024. While it experienced a brief resurgence, its decline in popularity and transactions is evident. The broader market’s decrease in interest in NFTs is also noteworthy, as it contributes to the drop in Runes’ transaction share on the Bitcoin network.
Sources
- Dune: Transaction Numbers
- Dune: Share of Transactions by Type
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