Can Ahmet 
The Bitcoin Runes protocol faced a significant decline at the end of 2024. After recording over 750,000 daily transactions in April, the protocol’s activity dropped below 100,000 transactions per day by December.
Runes’ Meteoric Rise and Record-Setting Months
Following its launch, the Runes protocol quickly emerged as a prominent player by utilizing the highest bandwidth on the Bitcoin network. On April 23, it registered 753,000 transactions, accounting for over 81% of all transactions on the Bitcoin blockchain. This achievement surpassed competitors like Ordinals and BRC-20, showcasing the potential of Bitcoin-based NFTs.
Although Runes maintained its momentum through early May, it suffered a sharp decline mid-month. While June saw a brief resurgence, the number of transactions plummeted by 88% by the month’s end.
The Performance of Runes NFTs
During its first four months, Runes delivered an impressive performance, surpassing 15 million total transactions and generating $160 million in transaction fee revenue by August. On August 23, the protocol recorded a brief recovery with 255,000 transactions, but this revival was short-lived.
Interest in the protocol waned after August, and transaction volumes failed to return to previous levels. The downward trend became more pronounced in Q4 of 2024, as transaction numbers continued to decline.
The broader NFT market also struggled throughout 2024, experiencing seven consecutive months of contraction. In September, monthly digital collectible sales dropped below $300 million for the first time since 2021. While November and December saw a brief recovery, it wasn’t enough to reverse Runes’ decline.
What Lies Ahead?
Despite its strong start, Runes ended the year on a weak note. The overall downturn in the NFT market, declining investor interest, and concerns about the sustainability of Bitcoin-based NFTs raise questions about the protocol’s future. Runes’ trajectory highlights the challenges of maintaining momentum in an evolving and volatile market.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.