Bitcoin Miners See Sharp Drop in Fee Revenue Following Halving Event

Following the recent Bitcoin halving, transaction fees, which once soared, now represent just 35% of miner revenue, significantly impacting their earnings amidst stable network conditions.

Bitcoin Halving Sees Miner Revenue Shift: Transaction Fees Dip from Peak Levels

The proportion of Bitcoin miner revenue derived from transaction fees has dropped dramatically after peaking on the day of the latest halving event, as per CryptoPotato.

A CryptoQuant report indicated that transaction fees now account for 35% of overall miner earnings, a dramatic decrease from 75% on April 19.

The fourth Bitcoin halving, which occurred last Friday, reduced miner block rewards by half to 3.125 bitcoins (BTC), lowering daily issuance from an average of 900 BTC to 450 BTC.

On the halving day, daily miner revenue increased to $100 million, owing to a significant increase in transaction fees. Daily Bitcoin network fees reached an all-time high of 1,258 BTC ($80 million), accounting for 75% of total earnings that day.

The Runes protocol, implemented on the Bitcoin halving block, was a key driving force behind the high transaction fees. Runes supports issuing and transmitting fungible tokens by storing data in OP RETURN codes. Using the codes on halving day reached a new high of 512,000 as people flocked to the Runes Protocol.

Bitcoin Transaction Fees Drop Post-Halving, Impacting Miner Revenue Amidst Stable Hashrate

Transaction fees fell to lower levels within less than 24 hours of the reduction and remained there. Fees account for 35% of overall miner revenue, now around $50 million, a 35% decrease from pre-halving record-high levels of approximately $78 million.

According to YCharts statistics, Bitcoin transaction fees have decreased from $80 million on April 20 to $6 million. They have averaged around $16 million during the last week, with the lowest level recorded on April 26.

Higher transaction fees and soaring BTC prices will help miners stay afloat after their block rewards are cut in half. With fees dropping by the day and BTC unable to rise beyond $64,000, some miners may soon be forced to resign.

Nonetheless, CryptoQuant believes it is too early to discern any long-term consequences of the halving on network hashrate because miners appear to be operating at the same rate as before the halving. The Bitcoin network hashrate is 617 EH/s, and the hash price is $0.07 per TH/s, the lowest since October.

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