The fourth Bitcoin halving event happened recently. This built feature lowers miners’ incentives for processing transactions, preventing inflation. The reward for miners before the halving was 6.25 Bitcoin (BTC) per block.

Following the Bitcoin halving event, Bitcoin transaction fees experienced a decrease. There was a surge in Bitcoin Transaction Fees as the users spent almost $2.4 million on the block halving.  After initially spiking to $146 for a medium-priority transaction and $170 for a high-priority transaction, the transaction fees have now stabilized. 

Current on-chain data indicates that medium-priority transactions are costing around $8.48, while high-priority transactions are priced at $9.32.

Nevertheless, this prize was reduced to merely 3.125 BTC due to the Bitcoin halving event. The event that happens once every four years has now affected the Bitcoin transaction fees immensely.

How Has The Runes Protocol Impacted Bitcoin Transaction Fees?

Following the Bitcoin halving in 2024, transaction fees increased dramatically. However, there was a brief time of higher profits for miners as now, the Bitcoin transaction fees have dropped.

Casey Rodarmor, the Bitcoin developer and the creator of the ordinals and inscriptions launched the Runes protocol at the same time as the Bitcoin halving event. It was expected that by boosting on-chain activity, this system, which was created to produce fungible tokens on Bitcoin, would sustain fee income after the halving. Nevertheless, there has been a mixed reaction to the protocol thus far.

The Runes NFT collection’s floor price fell by approximately 50% in the days that followed its introduction, and it is currently just about 0.037 BTC. Ordinal collections, such as NodeMonkes and Bitcoin Puppets, experienced increases of 8% and 11%, respectively, during this time. 

Although these collections yield substantial Bitcoin average transaction fees as well, the Runes protocol has not turned out to be as profitable as many thought.

Conclusion-

To sum up, there has been a noticeable impact on Bitcoin transaction costs due to the recent halving of the cryptocurrency and the introduction of the Runes protocol. Although miners enjoyed a temporary boost from the initial fee rise, crashes were seen later. Hence, uncertainty prevails throughout the market.

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Disclaimer: This post is intended solely for informational purposes and should not be taken as legal, tax, investment, financial, or any other form of advice. Although all the information provided is true to the best of our knowledge, it is advisable to research well before making any kind of investments or decisions in general. The team of ReadingCrypto bears no responsibility in the event of any adverse outcomes.