Runes NFT Floor Price Plummets Post-Halving
Introduction:
The halving of Bitcoin’s block reward, a highly anticipated event in the crypto community, has significantly impacted the network. While transaction fees have witnessed a notable decline, the floor price for the Runes NFT collection has taken a sharp downward turn, defying expectations.
Runes Protocol: The Anticipated Solution:
Amidst the revenue concerns raised by the halving, Casey Rodarmor’s Runes protocol emerged as a potential solution. Designed to create fungible tokens on Bitcoin, Runes was expected to bolster on-chain activity and offset the reduction in block rewards.
Floor Price Drop:
Despite the hype surrounding Runes, the floor price for its NFT collection has plummeted by nearly 50% in the last 24 hours. According to Magic Eden, the floor price currently stands at approximately 0.037 BTC. This sharp decline is in stark contrast to the gains witnessed by other ordinal collections like Bitcoin Pullets and NodeMonkes.
Transaction Fees:
While the halving has led to a significant decrease in transaction fees, the initial spike in fees post-halving mirrored the prediction of cryptoanalyst Mike Alfred. Alfred tweeted, “Invariably, the obscenely high fees immediately following the halving will mean revert. But we are at the beginning of a new era…”. This indicates that fees may remain elevated compared to pre-halving levels.
Ordinal Collection Revenue:
While ordinal collections generate transaction fees, they have not emerged as the expected revenue source post-halving. The floor price drop for Runes suggests that it may not be able to fulfill its anticipated role as a fee generator.
Conclusion:
The post-halving performance of the Runes NFT collection has been disappointing, falling short of expectations. Despite the promising nature of ordinal collections, the anticipated revenue boost has not materialized. As the crypto market navigates these changes, it remains to be seen whether Runes or other innovations will ultimately prove successful in mitigating the impact of the halving on miner revenue.