Bernstein: These Altcoins Will Bring Back the “DeFi Summer”!

Bernstein: Bu Altcoinler, “DeFi Yazını” Geri Getirecek!
Bernstein: Bu Altcoinler, “DeFi Yazını” Geri Getirecek!

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Bitcoin is shedding its reputation as a simple store of value and is experiencing a wave of activity reminiscent of Ethereum’s DeFi summer of 2020. The boom among these new altcoins coincides with the launch of Runes, a new token protocol for the Bitcoin blockchain.

DeFi 2.0: Those altcoins are starting to bounce

As we reported at, the movement started with the long-awaited Bitcoin halving on April 20. Halving miner rewards every four years, this event traditionally leads to a decline in miner revenues. But this time something unexpected happened. Transaction fees skyrocketed, outpacing declining block rewards and pushing total daily miner revenue to a record-breaking $107.75 million. Remarkably, over 75% of this revenue came from transaction fees alone, a testament to increased network activity.

Analysts at Bernstein attribute this increase to the excitement surrounding Runes. This innovative protocol offers a more efficient alternative to existing solutions by allowing the creation of fungible tokens directly on the Bitcoin blockchain. The prospect of minting new tokens, including some reluctant “meme tokens,” has attracted a wave of retail investors. This influx of users eager to join the movement has sparked a scramble for block space, driving transaction fees to unprecedented levels.

What is the meaning of Runes in the Bitcoin market?

The runes phenomenon highlights growing developer interest in the Bitcoin network. The ability to create fungible tokens opens up a wide range of possibilities, potentially mirroring the success of DeFi (Decentralized Finance) on Ethereum. Although the initial focus is on meme tokens, analysts predict that more utility-oriented altcoins will emerge in the future and further expand Bitcoin’s functionality.

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However, the initial enthusiasm surrounding the Runes has begun to cool. As the excitement faded, average transaction fees dropped significantly and daily miner revenue stabilized at around $51 million. This trend suggests that record-breaking wages are unlikely to be sustainable in the long term.

Will Bitcoin transaction fees continue to rise?

Bernstein analysts remain optimistic about the future of Bitcoin transaction fees despite the moderate fee environment. They predict that fees will consistently account for 15% of miner revenues, providing a more sustainable revenue stream for miners. In addition, the untapped potential of exchangeable tokens in Bitcoin could lead to a significant increase in network activity over time.

Recent developments have also had a positive impact on publicly traded Bitcoin miner stocks. These stocks rallied on expectations of increased activity after facing headwinds in the lead-up to the halving. Companies like Riot Platforms, Marathon Digital, and CleanSpark all made significant gains in the days before the halving. Looking ahead, the future of Bitcoin mining looks bright. Bitcoin’s healthy price above $64,000, combined with a windfall from transaction fees, has ensured that the total hash rate – a measure of network computing power – remains stable. Analysts believe that a decrease in the hash rate is possible only if the price of Bitcoin experiences a significant decline.

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Bernstein: These Altcoins Will Bring Back the “DeFi Summer”!