Bitcoin reclaims blockchain dominance post-BTC halving
Josh O"Sullivan13 hours agoBitcoin reclaims blockchain dominance post-BTC halvingBitcoin’s blockchain bandwidth usage surpasses 90% post-halving, driven by new token standards and increased transaction volume.2257 Total views37 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin’s blockchain bandwidth usage has exceeded 90% for the first time since the halving event in April, signaling a substantial rise in network activity.
Despite facing an “extended level” of fear, uncertainty and doubt (FUD), Bitcoin (BTC) adoption, transaction and trading activity remain unfettered.
Dune Analytics user Cryptokoryo’s chart portrays the defining moment on June 20, where BTC’s 91.4% dominance superseded 6.8% for Runes, 1.6% for BRC-20 and 0.2% for Ordinals in transactional share.Cryptokoryo’s chart depicting the share of transactions across Bitcoin, Ordinals, BRC-20 and Runes in 2024. Source: Dune AnalyticsAlways Rune for improvement
The increase in bandwidth usage after the halving can be primarily attributed to the adoption of new token standards, including Runes and BRC-20.
Dune Analytics data shows a significant rise in transactions involving both token standards, particularly on April 23, when Runes transactions exceeded 750,000.Cryptokoryo’s chart depicting the number of transactions across Bitcoin, Ordinals, BRC-20 and Runes in 2024. Source: Dune Analytics
Related:Bernstein analysts expect $200K Bitcoin price by 2025 due to spot BTC ETF flowsNew token standards
Speaking with Cointelegraph, Bitfinex analysts explained that:“New token standards such as BRC-20 and Ordinals have also contributed to more incentivization to build on BTC rather than other chains as Bitcoin ecosystem keeps gaining more mindshare.”
Runes were designed to establish fungible tokens on the Bitcoin blockchain and gained widespread traction, resulting in high transaction volume. Cryptokoryo’s chart depicting the transaction dominance between BRC-20 and Runes in 2024. Source: Dune Analytics
Paired with the adoption of BRC-20 tokens, this rise of more complex transactions and BTC blockchain interaction significantly increased the chain’s bandwidth load.
Related:Bitcoin’s days below $70K are numbered as traders cite BTC’s swing low as the bottomPost-halving impact
The recent April BTC halving event, which reduced block rewards for miners by 50%, led to miners prioritizing transactions with higher fees to compensate the reduction in rewards.
On the topic of the halving event’s impact on the BTC blockchain, Bitfinex analysts told Cointelegraph:“After the halving event, there is typically heightened onchain activity. Traders and investors adjust their positions, leading to more transactions being broadcast to the network.
The typical pattern resulted in an increased number of transactions being processed and gave momentum to the steady surge in BTC’s blockchain bandwidth usage.
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