The activity of Bitcoin Runes, which recently caused a spike in Bitcoin transaction costs, has unexpectedly decreased within a few weeks after charging $135 million in fees. The sharp drop in Rune activity contrasts sharply with the rising fee-generating frenzy, as seen on the Bitcoin network.
Transaction costs have risen significantly due to the phenomena known as Bitcoin Runes, defined by algorithmically created transactions intended to take advantage of weaknesses in the Bitcoin network. In the first week of last month, the Bitcoin network produced transaction fees of $107 million in a single day, a record, and $135 million in the first week.
The increased activity of Bitcoin Runes, which swamped the network with a flurry of transactions, generating congestion and raising costs, was directly blamed for the rate spike. However, in sharp contrast to the prior spike, fresh data analysis shows that Bitcoin Rune activity has drastically decreased. The quantity of Rune-generated transactions and related costs have significantly decreased, suggesting a dramatic drop in general network activity.
Drop in Rune Activities Linked to an Increased Regulatory Attention
Dorian Batycka, an industry observer from the Crypto News platform, proposes that the decrease in activity could have been caused by heightened regulatory attention and enforcement activities directed toward Bitcoin Runes.
Network infrastructure advancements and introducing anti-Rune safeguards by Bitcoin developers might have contributed to the decrease in Rune activity. The Bitcoin community has been constantly trying to find and fix vulnerabilities that Bitcoin Runes use to strengthen the network’s security and resistance against bad actors.
These efforts might have led to a decline in Rune-generated transactions and heightened awareness and caution among network users. Alterations in investor conduct and market dynamics may also impact Bitcoin Rune activity.
THORChain Emerge Makes Slow Positive Progress, Competes with Rune
Bitcoin has continued to draw interest from institutional players, businesses, and investors looking to get exposure to digital assets. Transaction fees may temporarily drop due to the decline of Rune-generated transactions, where as, the effect this will have on network stability and security in the long run is yet to be determined.
THORChain, in recent times, has witnessed slight green movement in the last seven days, at a time when the price of Rune was revolving around the $5.22 benchmark. This is happening after it experienced a range-bound in the trading.
Rune also gained a stronghold on April 30th, immediately after the partnership agreement with Symbiosis and THORChain happened. This facilitated a smooth swapping of any token into Bitcoin, which is obtainable in over 25 networks. The outcome of this uptrend has pushed the price of Rune to as high as $5.44 in the last seven days.
Rebel Satoshi Introduces Self, As Rune and THORChain Compete
The rising excitement surrounding the Rune and THORChain partnership started declining lately, altering the growing price. The negative trend continued until May 6th, when Rune gained by 0.77% to rebound at $5.36.
It is still uncertain if THORChain will sustain this trajectory, but it has remained one of the top options for investors. Industry experts say that Rune will continue to push close to $6.85. They also predicted that various industries will continue adopting the coin because of the recent THORChain’s alignment with Symbiosis.
Meanwhile, a rising memecoin project, Rebel Satoshi, designed to offer small traders the opportunity to participate in the centralized cryptocurrency ecosystem, has also started attracting investor’s interest, having only been launched in 2023. Rebel Satoshi is said to have the potential to carry its community along in growing its space.
The developers of Rebel Satoshi claim that the coin plans to build a digital currency ecosystem rich in NFT marketplace, an arcade, and a staking project. The developers took advantage of the dual-token system to guarantee that the coin’s system was running smoothly. As of press time, the only tokens in the Rebel Satoshi system are RECQ and RBLZ.