TeraWulf Chief Consider Runes Offering Significant Lifeline for Bitcoin Miners
TeraWulf chief executive Nazar Khan labels the Runes as a source of wildcard lifeline for the Bitcoin mining firms following mining. The crypto executive considers that transaction fees linked to Runes constitute a critical revenue boost realized by the BTC miners.
Khan explains that the surge in transaction fees arises from the Bitcoin Runes. It involves a newly unveiled protocol behind the issuance of fungible tokens on the network.
Runes Offers Lifeline for Bitcoin Miners
The TeraWulf chief observes that Runes is behind in increasing transaction fees traced to within 24-30 hours post-halving. Khan observes that while the transaction fees have dipped, they are pretty high compared to the averages realized in 2023.
Khan observes that with the Bitcoin block reward suffering a fixed issuance, transaction fees from Runes are the wild card bolstering the miners’ earnings. The executive considers the surge in transaction fees timely for the miners who have their revenues cut following halving the block rewards to 3.125 BTC.
CrptoQuant data backs Khan’s observation by indicating that the entire Bitcoin transaction fee was 105BTC on Thursday, a plunge from the 1,257 peak realized on April 20. Despite the decline from the Bitcoin halving day, CryptoQuant data shows the transaction fees are higher than in 2023.
Khan observes that transaction fees constitute 30% of the rewards derived from Bitcoin blocks since April 20 halving. Such constitutes an additional earning for the Bitcoin miners on the existing block rewards.
Higher Transaction Fees to Fuel Profitability for Miners
Khan considers that the 30% average transaction fee translates to 1 BTC added to a 3.125 BTC reward constitutes a critical addition for the miners.
The TeraWulf chief indicates that transaction fees comprised 10% of last year’s Bitcoin block rewards. The executive observed such using an average Bitcoin production cost of $37,000 post-halving.
Khan holds that the Bitcoin production cost will decline with rising average transaction fees. Lower expenditure to produce Bitcoin is a reprieve to miners seeking to optimize profitability.
Khan considers that the extent to which transaction fees rise is recognizable as long as it lowers the production cost. The mining firm chief indicates that a 10% transaction fee will yield profitability in the post-halving era.
TeraWulf stands to gain in rising transaction fees. Today’s eighth-largest mining firm boasts 750 million in market capitalization as per Companies Market Cap data and plots scaling operations despite halving rewards.
Runes to Realize Market Opportunity Post-Halving
Pseudonymous DeFi researchers consider that Runes will realize market opportunity after the halving. Researcher Ignas considers that Runes lacks utility and will likely replicate the volatile meme coins trade activity.
Ignas revealed in an April 17 post on X that the real opportunity would be unveiled monthly later as the wave of investor hype declines. The decentralized finance (DeFi) researcher added that while Runestone and RSIC are pumping, they will cool off after the Rune token airdrops.
Ignas predicts that Rune floor prices could plunge since they hardly bolster BRC-20 tokens’ trading experience immediately. Also, the small traders are likely priced out owing to the increasing Bitcoin transaction fees.
Bitcoin Runes to Fuel Activity to Layer 2s
Ignas explains that the bearish trend cannot last beyond the short term, as Bitcoin Runes will fuel activity to the BTC layer 2s, thus turning bullish in the long term.
Runes will trigger a net positive development for the Bitcoin Layer-2 networks. The DeFi researcher predicts that along Ordinal inscriptions, Runes will accelerate activity to the L2 networks.
Stacks product manager Andre Serrano echoes Ignas, explaining that higher Bitcoin network fees will ultimately price smaller transactions out. Such increases arise from increased asset issuance on the Bitcoin Layer 1, hence driving up transaction fees.
The increased issuance of L1 will price out most users who will likely embrace L2s as necessary. Serrano revealed that Bitcoin L2 network Stacks plans to unveil trading solutions tailored for Ordinals inscriptions, Runes, and BRC-20s.
Editorial credit: rafapress / Shutterstock.com
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
