With Bitcoin’s halving approaching, the market is focusing on the Runes protocol that will go live after the halving. The pre-launch projects of the Runes protocol have attracted a large amount of funds, such as $PUPS, with a daily trading volume of millions of dollars. This frenzy has driven up the transaction fees of Bitcoin, with the average transaction fee soaring from $4.11 at the beginning of the month to $12.17, surpassing Ethereum.
(Background:
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Less than 2 days away from Bitcoin’s halving, another focus of the market is the Bitcoin Runes protocol that will go live at the same time. The protocol was proposed by Casey Rodarmor, the founder of Ordinals, in September last year. It aims to solve the problems caused by BRC20 that block and disrupt the Bitcoin network, affecting normal transactions. It is an asset issuance protocol based on UTXO that is more lightweight and concise.
Considering the success of BRC-20, many people are betting that Runes has the potential to become the next hundredfold opportunity. Several pre-launch projects (Pre-Runes) have emerged on the market, claiming that investors should hold the corresponding runes (possibly Ordinals NFT or BRC20) in advance. After Runes goes live, the project will airdrop rune tokens to the holders.
For example, in addition to the largest market cap Runestone, $PUPS (BRC20) and Rune Pups (Ordinals NFT) mentioned multiple times by the influential figure Ansem and promoted by overseas communities have also received enthusiastic market attention. According to CryptoSlam data, $PUPS has reached a daily trading volume of millions of dollars since April, making it the second most traded NFT/BRC20 project in the past 7 days. Its total market cap has exceeded $400 million, and its price has surged 13 times in the past two weeks.
The Pre-Runes market is equally active, with a total market cap exceeding $1.2 billion according to Runesmarketcap data.
Note: The project plans to distribute 77% of the rune tokens to $PUPS holders, while the remaining 23% will be allocated to Rune Pups holders.
Bitcoin transaction fees nearly tripled
However, at the same time, the speculation surrounding these runes has also driven up the transaction fees of Bitcoin. The Block data shows that the 7-day moving average of Bitcoin network’s average transaction fee has increased from $4.11 at the beginning of this month to the current $12.17.
Although this number is still lower compared to the peak we saw during the Ordinals speculation period last year (when the average transaction fee exceeded $30), this increase is enough to push Bitcoin’s transaction fees (blue line) higher than Ethereum’s transaction fees (red line) in the near future.
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Bitcoin network’s average transaction fees have surpassed Ethereum in recent times.
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