The Bitcoin Runes protocol has faced challenges in keeping up with the increasing volume of Bitcoin transactions since its launch on April 20. Runes transactions have dominated Bitcoin blockchain traffic on eight different days, primarily on weekends, showcasing the growing interest and excitement surrounding the protocol. The launch of Runes coincided with the fourth Bitcoin halving event, which further fueled the surge in transaction volume on the Bitcoin blockchain network.

The interest in Runes has been significant, with Bitcoin mining revenue reaching an all-time high daily earning of $107.7 million, exceeding $100 million for the first time. Transactions attributed to the Runes protocol accounted for more than 50% of all Bitcoin transactions until April 24, with a peak of 81.3% on April 23. However, by May 2, this figure had dropped to 11.1%, indicating a decline in the initial excitement.

The excitement for Runes surged again on the weekend of May 4, 5, and 6, but this trend did not continue in the following weeks. As of May 22, Runes represented 12.7% of Bitcoin transactions, significantly higher than Bitcoin Ordinals (0.7%) and BRC-20 (1.5%). The remainder was accounted for by the broader Bitcoin ecosystem. Despite the decline, Runes transactions remain 84% lower than their all-time high.

Runes is part of a larger developer movement known as Bitcoin decentralized finance (DeFi) or BTCFi, aiming to provide more benefits to the Bitcoin network. The addition of newly launched protocols like Ordinals and BRC-20 has contributed to the Bitcoin network reaching a record level of 926,000 daily transactions.

It is important to note that the real market opportunity for the Runes protocol may only emerge months after the initial wave of investor excitement subsides. TeraWulf's co-founder and CEO Nazar Khan emphasized the value of block space, stating, "Runes and Ordinals show the value of block space. The Bitcoin network is the most decentralized, secure, and robust network, and therefore, there will be use cases and value derived from this block space."

The dominance of Runes transactions on the Bitcoin blockchain highlights the growing interest in Bitcoin DeFi and the potential for new protocols to drive innovation and adoption within the Bitcoin ecosystem. As the excitement surrounding Runes stabilizes, it will be crucial to monitor the long-term impact and sustainability of the protocol in the context of the broader Bitcoin DeFi landscape.