Bitcoin Fees Skyrocket to Record Highs as Runes Mania Grips Network

The latest iteration of NFTs and memecoins on Bitcoin, Runes, drove transaction fees to an all-time high, with users spending an unprecedented $80 million on fees in a single day. The improved version of Ordinals, Runes keeps all transactional data on-chain and has a smaller on-chain footprint, potentially becoming the de facto fungible token standard on Bitcoin. Meanwhile, the DeFi community is losing interest in airdrops, as recent token launches have led to declining token prices and waning enthusiasm for future airdrops.

Bitcoin Fees Surge to Record High, Driven by Runes Mania

Prelude

The latest iteration of non-fungible tokens (NFTs) and memecoins on Bitcoin, known as Runes, has ignited a frenzy among users, propelling Bitcoin transaction fees to an unprecedented peak.

Runes: A Game-Changer

Runes, an upgrade over its predecessor Ordinals, possesses two key advantages: it stores all transactional data on the blockchain and has a smaller digital footprint.

Experts anticipate Runes could establish itself as the de facto fungible token standard on Bitcoin, potentially triggering waves of activity similar to those witnessed with Ordinals.

Mango Markets Conviction Sets Precedent

The recent conviction of Avraham Eisenberg, the trader who exploited the Mango Markets protocol for $115 million, has reverberated through the decentralized finance (DeFi) community.

Prosecutors charged Eisenberg with commodities fraud, commodities market manipulation, and wire fraud, setting a precedent for future DeFi-related cases.

Airdrops Losing Their Luster

Crypto airdrops, once a highly coveted reward in the DeFi space, appear to be losing their appeal. Recent airdrops by Parcl and Wormhole have resulted in sharp declines in token valuations.

Some analysts attribute this trend to the lofty valuations at which these tokens were initially launched, leading to a sell-off as the initial hype subsides. Additionally, interest in future airdrops seems to be waning.

Runes Boost Bitcoin Miner Revenue

The surge in Runes trading has brought a substantial windfall to Bitcoin miners, who collected a staggering $80 million in fees from Rune minters on a single day. This amount far exceeds the previous record for transaction fees paid on the Bitcoin network.

DeFi Governance

Aave DAO is currently considering cross-chain deployment of its GHO stablecoin on Avalanche and Arbitrum. Arbitrum DAO is also voting on a proposal to support open-source software developers' rights. GnosisDAO is exploring the expansion of its services with the addition of a virtual private network (VPN).

On the Horizon

Crypto investigator ZachXBT announced an upcoming major investigation, which is expected to unveil significant revelations.

SAFE Token Unlock

SafeDAO, associated with the Safe multi-signature wallet, has enabled the transfer of its SAFE token. Ecosystem contributors will receive an airdrop of 25 million tokens, with half of the allocation distributed immediately and the remainder vested over four years.