Bitcoin Runes, a protocol enabling fungible token issuance on the Bitcoin network, has surged in popularity since its launch during the 2024 Bitcoin halving, accumulating a substantial 2,513 Bitcoin (BTC) in transaction fees valued at over $163 million, according to data from Dune Analytics.

The rapid growth of Bitcoin-native decentralized finance (DeFi), also known as BTCFi, has propelled Runes to become a dominant standard for token issuance on the pioneering blockchain network. Amidst the evolving landscape of blockchain technology, Runes transactions alone contributed 12.2% of the total transaction volume, surpassing other protocols like BRC-20 tokens and Ordinals inscriptions.

Since its inception, Runes has consistently outperformed BRC-20 tokens in terms of on-chain activity, recording 9,567 transactions daily compared to 3,938 transactions for BRC-20 and 474 for Ordinals-related activities. Regular Bitcoin transactions constituted the majority at 82% of the total volume, underscoring Bitcoin's primary use case as a digital currency.

The rise in Runes-related transaction fees comes as a significant boon for Bitcoin miners, especially following the halving event that reduced block rewards from 6.25 BTC to 3.125 BTC. This shift underscores the critical role of transaction fees in sustaining miner profitability amidst halving cycles.

Nazar Khan, co-founder and chief operating officer of TeraWulf, highlighted the impact of Runes on transaction fee dynamics, noting a noticeable increase immediately post-halving. While fees have moderated since the initial surge, they remain elevated compared to pre-2024 levels, offering miners a crucial revenue stream alongside fixed block rewards.

As Bitcoin continues to evolve as a platform for financial innovation through protocols like Runes, the outlook for Bitcoin-native DeFi remains promising, driving continued interest and investment in decentralized applications built directly on the Bitcoin blockchain.