Bitcoin OP_RETURN usage nears 700K as data protocols reshape network

iconCryptoBriefing
Share
AI summary iconSummary
Bitcoin news shows OP_RETURN usage nearing 700,000 as data protocols like Runes expand network activity. The Bitcoin Core v30 update in October 2025 raised relay limits, allowing more data embedding. Runes dominates this growth, with users minting tokens on Bitcoin’s base layer. Daily transactions hit 800,000, 80% under 0.01 BTC. Despite congestion, fees stay low due to low priority. Inflation data remains stable amid rising on-chain activity.

Bitcoin’s blockchain is being used less like a payment rail and more like a bulletin board. OP_RETURN outputs, the mechanism that lets users embed arbitrary data into Bitcoin transactions, are climbing toward 700,000 and approaching all-time highs.

The surge is largely driven by protocols like Runes, which piggyback on OP_RETURN to inscribe token data directly onto Bitcoin’s base layer.

What’s behind the spike

Two forces are colliding to produce this wave of activity.

Advertisement

First, Bitcoin Core v30, released on October 10, 2025, dramatically loosened the rules. The update raised the default relay policy limit on OP_RETURN data from 83 bytes to roughly 100 kilobytes, a more than 1,000x increase. It also allowed multiple OP_RETURN outputs within a single transaction, where previously only one was permitted.

Second, the Runes protocol has become the dominant consumer of that newly expanded capacity. A significant portion of recent OP_RETURN traffic traces back to Runes-related activity, with users minting and transferring fungible tokens that exist as data payloads on Bitcoin rather than on a separate chain.

The combination has pushed daily Bitcoin transaction counts above 800,000 at peak moments, the highest levels recorded since late 2024. According to CryptoQuant data from June 2026, approximately 80% of that volume consists of micro-transactions worth less than 0.01 BTC.

Congestion without the price tag

Mempool congestion peaked at roughly 128,000 pending transactions in June 2026, the highest backlog since February 2025. Yet median transaction fees have remained subdued. The reason is straightforward: these OP_RETURN-heavy transactions tend to be small and low-priority. They fill up blockspace without competing aggressively on fee rates, because the users sending them aren’t in a rush to settle large economic transfers.

Some mining pools have responded by prioritizing larger OP_RETURN batches, essentially sorting their own transaction queues to maximize the yield from this new class of data-embedding activity.

The blockspace debate heats up

BIP-110, a proposal currently under discussion, represents one attempt to formalize rules around blockspace allocation and transaction prioritization. The proposal reflects a broader philosophical split within the Bitcoin community: should the network optimize for monetary transfers, or should it accommodate the growing demand for data storage?

It’s worth noting that despite the relaxed limits introduced in Bitcoin Core v30, larger nonstandard payloads haven’t meaningfully increased since the update. Most transactions still use standard formats associated with Runes. The 100 kB ceiling exists, but few are bumping against it.

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.