The highly anticipated Runes Protocol went live today, coinciding with the fourth Bitcoin Halving event. While excitement builds around this innovative addition to the Bitcoin network, users face high transaction fees due to increased demand during the Halving.
Introducing Runes on the Bitcoin Network:
As part of the recently launched Runes Protocol, Bitcoin Runes serve as a new type of token on the Bitcoin Blockchain. Similar to ERC-20 tokens on Ethereum, Runes expand the functionality of Bitcoin by enabling novel forms of digital assets and applications directly on the most secure blockchain globally.
However, amidst the ongoing Bitcoin Halving, surging gas fees present challenges for early adopters seeking to mint their Runes.
High Demand Brings High Costs:
On April 9th, at block height 840,000, total transaction fees reached a staggering $2.4 million—an increase attributed mainly to the Halving. Consequently, minting new Runes also became expensive. Just nine blocks after the Halving, minters paid approximately $4.95 million in fees to secure their freshly minted tokens.
Despite these substantial costs, developers remain optimistic about Runes Protocol's future. They believe that once the hype surrounding the Halving subsides, transaction fees should return to normal levels, allowing more widespread adoption of the protocol.