![Rapid Fluctuations in Bitcoin Fees Cause Brief Spike in Hashprice Rapid Fluctuations in Bitcoin Fees Cause Brief Spike in Hashprice](https://static.news.bitcoin.com/wp-content/uploads/2024/06/ddddxxxc221112222-768x432.jpg)
Despite generating hundreds of thousands of dollars in daily fees, Runes has only surpassed $1 million in total fees twice in the last twelve days, signaling a notable decline.
The Runes protocol’s activity has decreased significantly since its first week of trading. On May 10th specifically, there was a notable decline in activity, with very few new mints and new wallets interacting with the protocol compared to previous periods.
According to a Dune analytics dashboard compiled by Runes Is, the protocol’s fee revenue has been declining steadily. Although Runes still earns hundreds of thousands of dollars daily in fees on the Bitcoin blockchain, the total fees have only surpassed $1 million on two occasions in the last twelve days, indicating a significant downward trend.
Runes is a new Bitcoin (BTC) token standard that allows users to create fungible tokens on the blockchain. They were created by Casey Rodarmor, the creator of Ordinals, which enabled Bitcoin nonfungible tokens.
The potential flip could further cement Solana’s status as an “Ethereum-killer,” which has been questioned due to the recent network outages.
The Solana network could be on track to overtake the Ethereum network in transaction fees, a potentially significant development for Solana’s status as a so-called “Ethereum-killer.”
Solana could flip Ethereum’s transaction fees as soon as this week, according to Dan Smith, senior research analyst at Blockworks, who wrote in a May 7 X post:
Captured MEV, or Maximal Extractable Value, refers to profits that are mostly captured through arbitrage trading on the protocols. MEV measures the maximum amount of value that can be extracted from a blockchain by a user or a group of users.
The surge in block fees on the halving day was more than making up for the halved block subsidy miners were hit with — but that’s not the case anymore.
The average fees paid on Bitcoin have sharply fallen just a day after reaching a record average of $128 on April 20 — the day of the fourth Bitcoin halving.
As of April 21, Bitcoin (BTC) fees have fallen to an average of $8-10 for medium-priority transactions, according to mempool.space.
Only one day before, Bitcoin clocked $78.3 million in total fees, beating Ethereum by over 24 times according to Crypto Fees.
Transaction fees will play an important role in keeping Bitcoin miners afloat after the halving as the subsidy for mining a block is set to fall from 6.25 BTC to 3.125 BTC.
Fees on Bitcoin have surpassed Ethereum for three consecutive days as miners and traders prepare for the upcoming Bitcoin halving, and, to a lesser extent, the introduction of Runes on Bitcoin.
Bitcoin miners have cashed in $7.47 million in fees on April 17 — about $160,000 more than the $7.31 million paid to Ethereum stakers, according to Crypto Fees.
Bitcoin miners also raked in $9.98 million and $5.91 million across April 15 and 16 — beating out Ethereum stakers by $3.5 million and 1.1 million on those respective days.
Many analysts are looking at how the cryptocurrency’s inflation rate will compare to gold’s after the halving, expected on April 19.
With the Bitcoin (BTC) halving expected to occur in the next four days, many analysts have suggested that the event could affect the cryptocurrency’s status as a store of value.
At the time of publication, roughly 630 blocks are left to mine before the Bitcoin halving occurs, meaning the monumental event in the crypto space will happen around April 19. In March, the BTC price reached an all-time high of more than $73,000 after the United States Securities and Exchange Commission approved the listing and trading of spot Bitcoin exchange-traded funds on exchanges in January, with the crypto asset continued to show volatility in its price.
Many crypto users and financial analysts claim that Bitcoin could be an effective hedge against inflation as countries’ central banks, including the U.S. Federal Reserve, devalue fiat currency by printing money. In contrast, there is a fixed supply of 21 million BTC, roughly 19.7 million of which have already been mined.
Bitcoin (BTC) network fees are seeing a massive surge in November as demand for ordinals floods the leading blockchain. Data from CryptoFees.info finds that BTC’s transaction fees skyrocketed from $779,549 at the start of the month to a peak of $11.63 million on November 17th, an increase of 1,391%. The number has slightly retraced and […]
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