The surge in Bitcoin transaction fees is attributed to the popularity of the Runes etching craze and its association with meme coins.
In a frantic attempt to take advantage of the latest trend in meme coins, the transaction fees on the Bitcoin network skyrocketed to $82 million on Saturday.
According to TheMinerMag, users were eager to create tokens using the Rune protocol, which enables the creation of interchangeable tokens. These digital assets have gained popularity similar to other tokens on different blockchains, such as Ethereum’s PEPE and Solana’s WIF, which have seen remarkable success this year.
Bloomberg reports that the Rune protocol, developed by Casey Rodarmor, also supports the creation of non-fungible tokens, adding to its usefulness. Rodarmor prefers to use the term “etching” instead of “minting” to more accurately describe the process of creating a Rune.
This surge in activity coincided with the recent Bitcoin halving, which reduces miners’ main source of income and forces them to rely more on transaction fees. Despite the decrease in subsidies, the frenzy surrounding Bitcoin meme coins significantly boosted miners’ revenues, accounting for about 75% of their total income. According to Luxor Technology, the total mining revenue was paid out in the form of 1,675 Bitcoin, equivalent to approximately $109 million at current rates.
However, as the initial excitement fades, mining revenue has started to decline from its two-year high, indicating potential challenges for miners who depend on these fees.
For more information, please read: Bitcoin gas fees drop nearly 10 times after halving. Follow us on Google News.
