Rune Protocol (Rune) Goes Live After Bitcoin Halving, Community Rushes to Forge Tokens Resulting in Record-breaking Daily Miner Revenue, Despite Costs Returning to Normal Levels as Hype Subsides, Analysts Remain Bullish on Bitcoin’s Homogeneous Token Market, Expecting to See More Utility-based Tokens over Time.
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Bitcoin Miners’ Daily Revenue Surpasses 100 Million USD
Is Bitcoin Welcoming a DeFi Craze?
Bitcoin’s Inscription and Rune Craze Temporarily Subsides, Costs Plummet
Bitcoin Miners’ Daily Revenue Surpasses 100 Million USD
The fourth Bitcoin halving was completed on April 20, 8:09 AM Taiwan time, when the block height reached 840,000, reducing the Bitcoin block reward from the original 6.25 to 3.125 coins.
Despite the halving of block rewards, miner revenue soared to 107.75 million USD on that day, with approximately 75% (80 million USD) coming from transaction fees, setting a new historical high.
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Miner Revenue | Source: Blockchain.com
Is Bitcoin Welcoming a DeFi Craze?
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Data shows that aside from being the first block after the halving, block 840,000 produced a transaction fee of 37.67 BTC, surpassing the historical record. Furthermore, there were 104 consecutive blocks after the halving where transaction fees exceeded mining rewards.
According to a report by The Block, Jameson Lopp, co-founder of Bitcoin custodian company Casa, stated:
I’m glad to see these results, which prove that transaction fees (without block rewards) are sufficient to maintain the security of the chain.
The surge in transaction fees is due to speculation on the Rune Protocol, according to Bernstein analysts, who also stated:
Bitcoin is no longer just a traditional blockchain. Users can hold Bitcoin and do more things. Bitcoin is experiencing a DeFi craze similar to Ethereum in 2020 when the Ethereum blockchain launched a large number of DeFi applications and tokens, leading to increased liquidity and transaction fees.
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Community Rushes to Forge Meme Tokens, Bitcoin Transaction Fees Far Exceed Block Rewards
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Bitcoin’s Inscription and Rune Craze Temporarily Subsides, Costs Plummet
Bernstein analysts pointed out that the demand for token minting in Runes has led to more competition, thereby driving up Bitcoin transaction fees.
According to Unisat data, over 7,000 Rune tokens have been minted so far, with “RSIC•GENESIS•RUNE” being the token with the most holding addresses.
However, as the craze subsides, Bitcoin’s average transaction fee has dropped significantly from 128.45 USD on the day of the halving to 34.80 USD on April 21, according to Mempool data. Currently, the average fee has fallen to 10 USD.
Nevertheless, Bernstein analysts remain optimistic about Bitcoin’s homogeneous token market, stating:
The potential of Bitcoin’s fungible token market has not been fully tapped. The total value of tokens such as DeFi on Ethereum exceeds 200 billion USD. Although Rune initially only had meme tokens, over time, we may see more utility-based homogeneous tokens on Bitcoin.
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