Home Business Bitcoin Miners Boosted by New Protocol

Bitcoin Miners Boosted by New Protocol

New bitcoin protocol earns miners millions more

In a remarkable milestone, the Runes protocol has generated over 2,500 bitcoin in transaction fees within two months of its launch. This achievement is a significant boost for the decentralized finance (DeFi) sector on the Bitcoin blockchain, which has been struggling since the halving in 2024.

Growth of DeFi on Bitcoin

According to statistics from Dune, the Runes protocol has generated a total of 2,513 bitcoin worth more than $163 million in fees since its inception. This impressive feat has taken place within a relatively short period, considering the protocol was launched during the bitcoin halving in April 2024.

Following the halving, the protocol has continued to generate significant fees, with more than 2,500 bitcoin accumulated. Interestingly, interest in bitcoin DeFi seemed to wane one month ago, with transaction volumes declining by 84%. However, the recent milestone suggests that the hype is back.

The Runes protocol is a new issuance platform for fungible tokens on the Bitcoin blockchain, and it is part of a larger ecosystem aimed at expanding the possibilities on the Bitcoin blockchain.

A lifeline for bitcoin miners

According to Nazar Khan, co-founder and CEO of TeraWulf, the Runes protocol offers a lifeline for Bitcoin miners. Khan observed that transaction costs increased substantially after implementing the Runes Protocol, with the largest increase occurring in the first 24 hours after the halving. Although costs dropped slightly after that, they remain relatively high compared to 2023.

Additional transaction fees from protocols like Runes could provide a crucial lifeline for Bitcoin miners following the halving. The reduction in block rewards from 6.25 bitcoin to 3.125 bitcoin has left miners struggling. As Khan notes, the fixed block rewards make transaction fees a wild card for miners, and an increase in costs would be welcomed by the industry.

Bitcoin Runes surpasses BRC-20 tokens and Ordinals

Runes is gaining traction as a dominant protocol for issuing fungible tokens on the world’s first blockchain. According to data from Dune, Runes has outperformed BRC-20 tokens and Ordinals in terms of activity on the blockchain since their launch.

Of all transactions on the Bitcoin blockchain, 12.2 percent were related to the Runes protocol, compared to 5 percent for BRC-20 transactions and 0.6 percent for Ordinals inscriptions. Regular bitcoin transactions still dominate daily usage, accounting for more than 64,000 transactions.

In terms of daily transactions, Runes had over 9,500 transactions, while BRC-20 had 3,900 and Ordinals had less than 500. The Runes protocol is clearly gaining momentum in the bitcoin DeFi space.

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