The recent Bitcoin halving event has had a significant impact on miner revenue, particularly in terms of transaction fees. Following the halving, which occurred last Friday, miner block rewards were reduced by half to 3.125 bitcoins (BTC). This resulted in a sharp decline in daily issuance from an average of 900 BTC to 450 BTC. On the day of the halving, daily miner revenue experienced a surge to $100 million, largely driven by an increase in transaction fees.
Despite the initial spike in transaction fees on the day of the halving, the portion of miner revenue coming from fees has since fallen drastically. According to a CryptoQuant report, transaction fees now make up only 35% of total miner revenue, a significant decrease from the 75% recorded on April 19. Daily fees on the Bitcoin network rose to 1,258 BTC ($80 million) on the halving day, representing 75% of total revenue for that day. However, fees quickly returned to lower levels in the days following the halving.
With transaction fees now accounting for a smaller portion of total revenue, miners are facing challenges in maintaining profitability. Miner revenue has dropped to around $50 million, a 35% decline from the record highs seen before the halving. Bitcoin transaction fees have also decreased significantly, falling from $80 million on April 20 to $6 million. The average fees over the past week have been around $16 million, with the lowest figure recorded on April 26.
As transaction fees continue to decline and Bitcoin struggles to surpass $64,000, there is growing concern about the viability of miners. The reduction in block rewards coupled with dwindling transaction fees could force some miners to shut down their operations. However, it is still too early to gauge the long-term effects of the halving on the network hashrate. Despite the challenges, miners appear to be maintaining their operations at a similar rate as before the halving, with the Bitcoin network hashrate currently standing at 617 EH/s and the hashprice at $0.07 per TH/s, the lowest since October.
The recent Bitcoin halving event has reshaped the landscape of miner revenue, with transaction fees now constituting a smaller portion of total earnings. As fees continue to decline and BTC prices struggle to rise, miners face the challenge of maintaining profitability in a post-halving environment. The coming weeks will be crucial in determining the long-term sustainability of mining operations in the face of reduced rewards and changing market conditions.
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