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Rune's launch on April 20th, the day of the fourth Bitcoin halving, was spectacular. Fueled by the hype surrounding this massive event, Loon attracted considerable attention and sparked a heated debate about the future and usefulness of Bitcoin. But a month after his explosive launch, that enthusiasm seems to have waned and he's become more cautious about its true impact.
Initial excessive enthusiasm for Bitcoin
On April 20th, the Bitcoin market was rocked by the arrival of Rune. On that day, Rune transactions accounted for 57.7% of all Bitcoin transactions, far exceeding other types of transactions such as Ordinal and BRC-20 tokens.
While this sudden dominance was impressive, it was unsustainable in the long term. The hype surrounding Bitcoin's halving played a key role in this initial explosion of interest.
The influence of runes was especially evident in the early days. On April 20th, 3,344 runes were inscribed, generating approximately $3 million in fees.
However, this high activity did not last. By April 23, the number of runes inscribed had dropped to 625, and the associated fees had plummeted to $73,793. It peaked on April 26 with 23,061 runes inscribed, but this momentum did not continue, and by May 20, only 139 runes had been inscribed.
Data provided by Dune Analytics shows that Runes' activity has tended to fluctuate: Initially, its share of Bitcoin transaction fees was impressive, reaching 70.1% on the day of launch, but this share has fluctuated wildly, peaking at 81.3% on April 23, before dropping to 17.8% a month later.
This volatility reflects the initial enthusiasm followed by an inevitable correction. The fees generated by Rune trading followed a similar curve. By May 20, Rune trading was 8.7% of total feeThis is a significant decrease from the initial figures. These fluctuations demonstrate the difficulty of maintaining high levels of activity over an extended period of time.
lessons learned
Although Loon's popularity has declined, Loon has left an indelible mark on the Bitcoin market. In his first 30 days, 92,713 runes were created with a total transaction fee of 2,299 BTC. This initial activity allowed us to test Rune's feasibility and potential impact on the Bitcoin ecosystem.
Loon now appears to be settling into a less dominant but more stable role within the market. This pattern is reminiscent of Bitcoin Ordinal, which also experienced an initial frenzy followed by stability. As Loon becomes an integral part of the Bitcoin ecosystem, Loon's impact on fees and transactions should continue to decrease, leading to a more stable and predictable integration.
The launch of Runes demonstrated just how volatile the cryptocurrency market can be. After a spectacular start, interest in Runes quickly faded, highlighting the difficulty of maintaining continued attention in the space. Nevertheless, Runes managed to leave a lasting mark on the Bitcoin market, illustrating both the opportunities and challenges that come with the introduction of new innovations in the cryptocurrency space. Runes' future, while less flashy, remains promising as a stable component of the Bitcoin ecosystem. Meanwhile, Bitcoin is becoming increasingly decoupled from other assets.
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Disclaimer
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please conduct your own research before making any investment decisions.
