The Bitcoin Runes protocol, which initially sparked a surge in Bitcoin transactions, has seen a significant decline in activity, raising questions about the sustainability of its momentum.

Since its launch on April 20, the Runes protocol experienced a meteoric rise in Bitcoin blockchain traffic, dominating transactions on eight different days, particularly during weekends. The protocol's launch coincided with the fourth Bitcoin halving, fueling anticipation and excitement within the crypto community.

During its peak, transactions attributed to the Runes protocol accounted for over 50% of all Bitcoin transactions, reaching an impressive 81.3% of the bandwidth on April 23. However, this fervor began to wane rapidly, with Runes transactions plummeting to just 11.1% by May 2, marking a significant drop.

Although the Runes hype experienced brief resurgences during subsequent weekends, its overall trend has been on a downward trajectory. As of May 22, Runes transactions represented 12.7% of Bitcoin transactions, down by over 84% from their peak.

Runes is part of the broader Bitcoin decentralized finance (DeFi) movement, aimed at enhancing the utility of the Bitcoin network. Alongside Ordinals and BRC-20, the launch of the Runes protocol contributed to a record high of 926,000 daily Bitcoin transactions.

However, industry experts suggest that the true market potential of the Runes protocol may only become apparent in the months following the initial wave of investor excitement. Nazar Khan, the co-founder and CEO of TeraWulf, emphasized the value of block space facilitated by Runes and Ordinals, highlighting the decentralized, secure, and robust nature of the Bitcoin network as a source of future use cases and value.

As the crypto market continues to evolve, the fate of the Bitcoin Runes protocol remains uncertain, with its ability to sustain long-term adoption and utility yet to be fully realized.