Despite Bitcoin's block size hitting a yearly low, the Runes minting market continues to show strong activity and profitability.
Significant Decline in Block Size and Transaction Rates
The Bitcoin network has seen a notable decline in its average block size and transaction rates, coinciding with a price drop to around $64,100. The decrease in block size, which measures the transaction data included in each block, indicates a sharp fall in Bitcoin blockchain activity, reaching a yearly low on June 7.
Simultaneously, the network’s transaction per second (TPS) rate declined in June, suggesting reduced activity and potentially decreased miner profitability due to post-halving BTC block rewards.
Halving Implications
The BTC halving event in April reduced block rewards for miners by 50%, effectively decreasing profits and incentives to contribute to blockchain activity. TPS rates fluctuated significantly in June, from highs around 28 TPS to lows below 4.5 TPS, with an average of 9.12 TPS at the time of writing.
Runes Minting Market Shows Resilience
Contrary to the general decline in the BTC blockchain, the Runes minting market remains active and profitable. An X post by Leonidas on June 19 highlighted the continued strong user activity in the Runes ecosystem.
The secondary market performance of the top 10 largest Runes mints ranged from -82.76% to +1,194.42%, indicating sustained market activity despite the broader network trends.
Market Trends and Analyst Insights
The recent drop in Bitcoin price and network activity might signal the beginning of a prolonged correction. Crypto analyst Rekt Capital noted the potential for continued BTC correction, forming “clusters of price action near the Range High resistance at ~$71,600.” As of June 17, BTC was approaching the $64,000 and $62,500 levels, identified as daily Chicago Mercantile Exchange gaps, indicating potential market volatility.
Spurce: Cointelegraph
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