Emily Walker
Recent on-chain data indicates that while Bitcoin’s Hashrate has stalled its upward trend, miner revenue remains at a significant level.
Recent Increases in Bitcoin Miner Revenue
In a recent update on X, CryptoQuant’s Axel Adler Jr explored recent changes in Bitcoin’s Total Miner Revenue. “Total Miner Revenue” refers to the overall earnings of miners from their operations on the BTC network.
Miners generate income in two primary ways: through block subsidies and transaction fees. The block subsidy consists of BTC rewards that miners receive for successfully solving blocks in the network.
This subsidy is fixed in BTC and determined by the network, while transaction fees vary significantly. These fees are paid by users sending transactions and depend on current network traffic. When congestion occurs, senders often increase fees to ensure their transactions are prioritized by miners.
Typically, transaction fees contribute a smaller portion of miner revenue compared to block subsidies. An accompanying chart from the analyst illustrates the fluctuations in Total Miner Revenue for Bitcoin over the years.
The chart indicates that Total Miner Revenue peaked in early 2024 before experiencing a sharp decline around April, largely due to the event known as the fourth Halving.
Halvings, which happen every four years in the Bitcoin blockchain, cut the block subsidy in half, which directly impacts miners’ earnings, leading to potential revenue losses during such events.
Nevertheless, the chart suggests that there has been a recovery in Total Miner Revenue in the recent months, now reaching approximately $45 million. Although this figure is lower than the early 2024 peak, it is still higher compared to previous cycles.
This resurgence in miner revenue is attributed to increased blockchain activity and the recent price growth of Bitcoin, which also elevates the USD value of the block subsidy.
Curiously, despite the current revenue levels being significantly high, the Hashrate—a gauge of the total computational power miners contribute—has been decreasing.
The Hashrate often reflects miner sentiment; it appears these miners are exercising caution and pausing growth. This behavior could stem from uncertainty about the current BTC bullish trends.
Bitcoin Price Trends
Bitcoin has experienced notable volatility in recent days, with significant price fluctuations. Currently, its price is on the rise, surpassing $105,000.