Bitcoin Regains Dominance of the Blockchain After the Halving

Bitcoin blockchain bandwidth usage exceeds 90% after the halving, driven by new token standards and increased transaction volume.

Bitcoin (BTC) blockchain bandwidth usage has exceeded 90% for the first time since the halving event in April, indicating a substantial increase in network activity.

As reported by Dune Analytics user Cryptokoryo, BTC's 91.4% dominance surpassed 6.8% for Runes, 1.6% for BRC-20 and 0.2% for Ordinals in the transactional participation on June 20.

Bitcoin blockchain bandwidth usage surpasses 90% post-halving

The increase in bandwidth usage after the halving can mainly be attributed to the adoption of new token standards, including Runes and BRC-20.

Rune, a native token standard on the BTC blockchain, enables the creation and minting of fungible tokens on Bitcoin.

Rune tokens have gained widespread traction among users, resulting in high transaction volume on the BTC blockchain.

Data from Dune Analytics shows a significant increase in transactions involving both token standards, especially on April 23, when transactions with Runes surpassed 750,000.

In a conversation with Cointelegraph, Bitfinex analysts highlighted the impact of new token standards on Bitcoin blockchain bandwidth usage:

“New token standards like BRC-20 and Ordinals have also contributed to greater incentive to build on top of BTC rather than other chains, as the Bitcoin ecosystem continues to gain more relevance in the minds of developers.”

These more complex transactions and interaction with the BTC blockchain significantly increased the chain's bandwidth load.

Post-halving impact on Bitcoin miners

The recent BTC halving event in April, which reduced block rewards for miners by 50%, led miners to prioritize transactions with higher fees to offset the reduction in rewards.

As a result, the average transaction fee on the BTC blockchain has increased post-halving, contributing to higher revenue for miners despite the decrease in block rewards.

Miners are also exploring other strategies to increase revenue, such as offering whitelisting services for specific tokens or engaging in miner-extractable value (MEV) activities.