CryptocurrencyBitcoin Selloff Provides Boost To Miner Fee Revenues

Bitcoin Selloff Provides Boost To Miner Fee Revenues


Bitcoin sell-offs have been the order of the day since the weekend. This has translated to ever-decreasing prices for the digital asset. Another avenue where this has had an effect has been the miner fee revenues. Usually, these transaction fee revenues have been on the low side. But with the recent sell-offs triggering a surge in daily transaction volumes, the result has been more earnings for miners in terms of transaction fees.

Bitcoin Daily Revenues Plummet

Even though there has been a surge in miner fee revenues, the daily miner revenues have not gone up with it. Even with the increased on-chain activity, revenues have fallen short of the figures recorded for the previous week. 

Related Reading | Crypto Liquidations Reach $1 Billion As Sentiment Falls To 10-Month Lows

The increased transaction volume has been a direct result of the high volatility that has been recorded in the market. As always, when volatility is this high, investors are usually moving their coins, mostly to sell off, to avoid taking more losses in the market. This saw daily transaction volume grow as high as 63.48% in the space of a week. The average transaction value had no doubt had the highest impact on this, which had increased by 66.38% in the same time period. 

btc hashrate

BTC hashrate on the rise | Source: Arcane Research

Daily transaction volume is now sitting at $8.3 billion, up from $5.06 billion the previous week. Daily miner revenues are down 9.17% from the prior week’s $37.28 billion to be sitting at $33.86 billion for the last week. 

Fees per day also saw a 28.81% increase. What this resulted in was growth from $421,137 to $542,486. This puts the percentage of transaction fees making up miner revenues at 1.6%, one of the highest levels ever recorded in 2022.

Mining Difficulty On The Rise

The block production rate from miners has been on the rise for the last couple of weeks. However, with the last week, it had begun to crumble. It fell 2.15% from its 6.36 block production rate per hour for the prior seven days to now be sitting at a 6.23 block production rate for last week.

Bitcoin price chart from TradingView.com

BTC crashes below $30,000 | Source: BTCUSD on TradingView.com

Nevertheless, the block production rate for bitcoin miners is still high, as the previous target had been a block production rate of 6 per hour. With such a high block production rate, it is expected that the mining difficulty is set to go up another 4% to 5% by Wednesday.

Related Reading | Market Downtrend Trigger Bitcoin Inflows From Institutional Investors

Bitcoin’s hashrate continues to remain high and has not been negatively impacted by the recent market crash. Average transactions per block are down for the past week though from 1,806 to 1,774, accounting for a 1.75% decrease.

Featured image from Business Today, charts from Arcane Research and TradingView.com



Original Source Link

Latest News

Kanye West and Bianca Censori Spotted After Alleged Assault – Hollywood Life

View gallery Kanye “Ye” West and wife Bianca Censori were spotted out in Los Angeles separately one day after...

Lawmakers advance measure to bring more booze to movie theaters in New York—’Someone should be able to enjoy a cocktail while they watch a...

New York would expand access to booze by allowing movie theaters to sell liquor and continuing to let...

Pick Your Poisson

This article is featured in Bitcoin Magazine’s “The Halving Issue” and is sponsored by HIVE Digital Technologies LTD...

Meta Is Already Training a More Powerful Successor to Llama 3

Zuckerberg took to Instagram today to explain that Meta would incorporate the new Meta AI assistant, powered by...

Two Cheers for the Proposed End Kidney Deaths Act

At the Vox website, Dylan Matthews offers a compelling defense of the proposed End Kidney Deaths Act....

Must Read

- Advertisement -

You might also likeRELATED
Recommended to you