U.Today – Following the (BTC) halving, transaction fees on the network skyrocketed as the Runes token standard launched at the same time triggered an explosive gas fee. In a dramatic twist, CryptoQuant analyst Julio Moreno pointed out that transaction fees are falling significantly.
According to his analysis, despite the huge amount of Runes activity recorded on April 20, transaction fees fell dramatically. As previously reported, Runes' impact peaked when a trader paid over $500,000 in transaction fees. While this is nothing new for the Bitcoin blockchain, the higher than average gas value suggests that average users will be overwhelmed when conducting transactions on the network.
According to Moreno, despite the massive adoption of Runes, Bitcoin recorded a daily average transaction fee that was lower than it was in late 2017 and early 2018. Despite these impressive statistics, the headwinds have not been eliminated as the network balance may tilt negatively in the future.
Events running on the Bitcoin blockchain take precedence. At the beginning of last year, the BRC-20 token standard was created, powering many transactions on the network, a situation that is now easing.
Unique twists on Bitcoin transactions
The Runes standard creates good traction that puts Bitcoin in a good position and miners are ready to benefit from the high traffic generated. Now that the Bitcoin halving has reduced overall transaction fees, this Runes transaction boom will help provide the necessary cushion to keep miners in business.
Unlike Bitcoin, there are no plans to improve the blockchain to reduce transaction fees. Ethereum has done this with the recently launched Dencun upgrade. This upgrade repositioned Ethereum Layer 2 protocols, with fees reduced to a fraction of pre-upgrade costs.
Despite the growing amount of activity surrounding Bitcoin, fee reduction improvements are not currently on the radar of core developers.
This article was originally published on U.Today
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