Bitcoin
Transaction Fees Drop to 35% of Bitcoin Miners’ Revenue After Halving: CryptoQuant
The share of Bitcoin mining revenue from transaction fees has dropped significantly following the increase on the day of the last halving event.
A CryptoQuant report revealed that transaction fees now represent 35% of the mining company’s total revenue, a significant decline from the 75% recorded on April 19.
Transaction fees increase during halving
The fourth Bitcoin halvedwhich occurred last Friday, reduced mining block rewards by half to 3,125 bitcoins (BTC), resulting in daily issuance dropping from an average of 900 BTC to 450 BTC.
On the day of the halving, the mining company’s daily revenue soared to US$100 million, due to a notable thorn in transaction fees. Daily fees on the Bitcoin network rose to 1,258 BTC ($80 million), a level never seen before, representing 75% of the total revenue for that day.
An important propeller One of the high transaction fees was the Runes protocol, which boosted network activity after being launched on the Bitcoin block halving. Runes allows the issuance and transfer of fungible tokens by storing data in OP RETURN codes. Code usage on halving day reached a record 512,000 as users flocked to Runes Protocol.
A significant drop in rates
In less than 24 hours after the halving, transaction fees returned to lower levels and remained there. Fees currently constitute 35% of the mining company’s total revenue, while the latter now stands at around US$50 million, a 35% decline from pre-halving record levels of approximately US$78 million.
According to YCharts data, Bitcoin transaction fees have increased fallen from $80 million on April 20 to $6 million. Last week, they hovered around an average of $16 million, with the lowest figure recorded on April 26.
Higher transaction fees and rising BTC prices will help miners stay afloat as their block rewards have been halved. With rates falling every day and BTC fighting to surpass $64,000, some miners may soon be forced to give up.
However, CryptoQuant said it is too early to see any long-term effects of the halving on the network hashrate, as miners appear to be running their operations at the same rate as before the halving. The Bitcoin network’s hashrate is at 617 EH/s, while its hash price is now at $0.07 per TH/s, the lowest since October.