Bitcoin network activity has surged to a two-year high: the Runes protocol has become the main catalyst.
The Bitcoin network is experiencing a surge in activity unseen since April 2024. On June 23, the daily number of transactions exceeded 820,000 — the highest figure in the last two years. Notably, this spike occurs amid bearish sentiment in the market: the leading cryptocurrency is trading around $62,000, roughly 50% below its all-time high.
The key driver of this growth is the Runes protocol. Transactions with its messages exceeded 600,000 per day, and their share in network fee revenue reached an impressive ~25%. This indicates that users are actively utilizing Runes to create and transfer digital artifacts, despite the overall market correction.
Situation Analysis
An increase in activity amid a price decline is unusual for Bitcoin. Typically, we observe a correlation between the number of transactions and the asset's value. However, Runes, as a new protocol for inscriptions, has attracted speculators and collectors, creating artificial demand for blockchain resources. This resembles the NFT boom on Ethereum in 2021, when fees skyrocketed, but the asset itself remained range-bound.
My assessment: The current spike is a temporary effect linked to the hype around Runes. Once interest in the protocol fades, activity will return to normal levels. Investors should consider that high fees do not always signal a bullish trend — sometimes, they are merely a sign of speculative frenzy.