As the highly anticipated bitcoin halving approaches, excitement is not just brewing over the reduction in bitcoin issuance, but also over the potential impact of Runes, a groundbreaking protocol developed by Casey Rodarmor, the mastermind behind Ordinals.

Initially known for introducing non-fungibility to Bitcoin through Ordinals, Rodarmor’s latest creation, Runes, aims to revolutionize token issuance on the Bitcoin network. Unlike its predecessor BRC-20, Runes adopts a UTXO model, promising a more efficient mechanism for token creation without congesting the network.

Rodarmor unveiled Runes back in September 2023, allowing ample time for enthusiasts to anticipate its arrival. With the success of BRC-20 serving as a testament to the market demand for tokenization on Bitcoin, many are placing their bets on Runes as the next big breakthrough. The announcement of OKX's support for Runes in January further fueled this optimism, promising wider adoption across wallets and marketplaces.

The anticipation surrounding Runes has already translated into significant market activity, as evidenced by the soaring trading volumes of PUPS, a token currently based on the BRC-20 standard. According to CryptoSlam, PUPS has emerged as one of the most actively traded NFT/BRC-20 collections in recent days, foreshadowing its transition to the Runes ecosystem upon launch.

While the PUPS project openly acknowledges its status as a memecoin, the allure of meme-driven assets in today's market climate has undoubtedly contributed to its popularity and the broader Runes hype.

However, this fervor surrounding Runes has had a notable side effect: a sharp increase in transaction fees on the Bitcoin network. The average transaction fee, as measured by the 7-day moving average, has surged from $4.11 earlier this month to $12.17 presently. Although still below the peak levels witnessed during the Ordinals hype in December, this upward trajectory has propelled Bitcoin transaction fees above those of Ethereum.

Meanwhile, Ethereum's transaction fees have experienced a decline, attributed to the emergence of cheaper layer 1 solutions and scaling networks, which have diverted activity away from Ethereum, once hailed as the primary blockchain for DeFi applications.