Bitcoin fees surge 32% amid rising Runes transactions

Bitcoin (CRYPTO:BTC) transaction fees have surged by over 32% this week, reaching their highest levels since August. 

According to data from IntoTheBlock, Bitcoin miners earned $5 million in fees during this period, reflecting a sharp increase in network activity. 

The spike in fees is largely attributed to the rise in Runes transactions, a Bitcoin token standard developed by Casey Rodarmor, the creator of Ordinals.

Based on on-chain data, Runes-related transactions accounted for over 15% of all Bitcoin transactions during the past week.

On October 7, Runes transactions represented 19.4% of total Bitcoin transactions, although this number fluctuated throughout the week. 

The growing demand for Runes tokens has fueled this rise, with tokens like DOG, RSIC, and BILLION experiencing price increases, according to Magic Eden.

Market analysts noted that the resurgence in Runes activity is driving this fee hike, even as Bitcoin’s price has remained relatively stable, trading between $60,000 and $63,000. 

Alkimiya, a decentralised capital markets protocol, reported that Runes transactions dominated more than 50% of Bitcoin’s blockspace over the past week. 

As a result, the average BTC median fee rate increased by as much as 65%. 

Alkimiya further explained that the fee spikes were caused by four distinct Runes minting events between October 8 and October 15. 

These spikes resulted in temporary increases in the fee rates, which quickly subsided after the minting concluded.

The Runes standard allows for more efficient token creation and management on the Bitcoin network, providing an alternative to the BRC-20 standard, which has been criticised for its high token creation costs. 

As interest in Runes continues to grow, the rising transaction volume and associated fees indicate that it is becoming a key factor in Bitcoin’s ongoing network activity.

At the time of writing, the Bitcoin price was $62,783.34.