Altcoins in Bitcoin Are “A Historic Transformation,” According to Analysis
Runes has dramatically increased transaction fees and miners’ income. Daily commissions reached a historic figure of $80 million, with an average commission of $128. Wall Street underestimated the impact of the Runes, hurting mining stocks.
The Bitcoin blockchain is undergoing a historic transformation, led by the introduction of the Runes token standard. This new development improves the functionality of Bitcoin by allowing the creation of fungible tokens.
It also significantly increases transaction fees and miners’ income, reshaping the economic landscape of the network. Lucas Outumuro, Head of Research at IntoTheBlock, recently highlighted the seismic impact of Runes, describing it as “absolutely insane.”
Altcoins in Bitcoin Mark a New Milestone
The manager pointed out the increase in daily commissions, which reached the record figure of 80 million dollars. This is approximately four times higher than the previous all-time high set in December 2017.
Additionally, the average Bitcoin transaction fee has skyrocketed to $128, a figure that clearly eclipses the peak of $30 during the initial frenzy over Ordinals.
This increase in fees has been a boon for miners, who despite a 50% drop in inflationary rewards due to the halving, saw their profits soar 1,200% following the launch of the Runes.
The sudden surge led to a record $100 million in Bitcoin mining revenue. However, the introduction of Runes coincided with a significant decline in new Bitcoin addresses, which have reached their lowest level in two years.
According to Outumuro, this indicates that the current boom is mainly driven by seasoned crypto enthusiasts, while retail investors have not yet joined the battle. The traditional financial sector, particularly Wall Street, was surprised by these events.
Bitcoin Meets Pessimistic Forecast and Rises Moderately After Halving
Not much has changed after this Saturday the Bitcoin blockchain completed the fourth halving in its history. The queen cryptocurrency continues to move at the levels it has been doing for the last month and a half.
Without seeing how the situation evolves in the coming days, it seems that the most pessimistic investors were right that the ‘halving’ would hardly have an immediate effect on prices. Numerous analysts, such as those from JP Morgan or Goldman Sachs, raised their doubts in recent days about the possibility of a bullish ‘rally’ in the coming days, a trend that has been repeated in each of the three reductions to the previous half, due to the confluence of several factors.
In the face of contexts with low inflation and interest rates at zero or below zero, recent weeks have shown that inflation is stickier than expected and that interest rates could remain high for longer than expected. It was thought at the beginning of the year.
Moreover, the escalating tension between Iran and Israel has drastically reduced the appetite for risk, which has done quite a bit of damage to bitcoin, which continues to fail to consolidate its role as the “digital gold” that it aspires to have.
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Values such as Marathon Digital Holdings (MARA) and Riot Platforms (RIOT) suffered drops of more than 20% in the month before the halving, underestimating the potential of Runes and the adaptability of the cryptocurrency market.
This historic network transformation suggests a solution to Bitcoin’s longstanding security issues, fueled by what many in the industry refer to as “shitcoins.” As this trend continues, the real test will be its sustainability and whether the initial momentum can be sustained.
By Audy Castaneda