Surge in Bitcoin transaction fees linked to meme coin, Runes etching craze

by

On Saturday, the fee for transactions on the Bitcoin network reached an astounding $82 million in the heated race to profit from the newest trend of meme coins.

Based on TheMinerMag’s report, there was great interest among users to create fungible tokens using the Rune protocol.

The allure of these digital assets is reminiscent of the remarkable achievements of comparable tokens on other blockchains, such as Ethereum‘s PEPE and Solana’s WIF, which have thrived remarkably in 2021.

Based on Bloomberg’s report, the Rune protocol, developed by Casey Rodarmor, can generate non-fungible tokens in addition to its primary function. Rodarmor chose the term “etching” instead of “minting” to better reflect the process of creating a Rune token.

The increase in action occurred at the same time as the most recent Bitcoin (BTC) halving. During this event, miners’ primary earnings are reduced by half, forcing them to depend more on earning fees from transactions.

Although subsidies decreased, the craze over Bitcoin meme coins led miners to earn an extra 75% of their total income. With a revenue of around 1,675 Bitcoins, equivalent to roughly $109 million at present rates, Luxor Technology disclosed this information.

After the initial thrill fades, mining revenue has begun to decrease from its peak over the past two years. This decline could indicate difficulties for miners who heavily rely on these fees in the future.

Read More

2024-04-22 23:29