On-chain data shows the Bitcoin Hashrate has recently paused its uptrend despite the proven fact that miner revenue is currently sitting at a notable level.
Bitcoin Miner Revenue Has Observed A Rise Recently
In a recent post on X, CryptoQuant writer Axel Adler Jr has discussed concerning the latest trend within the Total Miner Revenue for Bitcoin. The “Total Miner Revenue” measures, as its name implies, the whole amount of income that the miners as a complete are making through their activities on the BTC network.
Miners earn their revenue through two means: block subsidy and transaction fees. The primary of those, the block subsidy, refers back to the rewards (in BTC) that miners receive as compensation for solving blocks on the network.
The block subsidy is given out by the network itself and is all the time fixed in BTC value. In contrast, the opposite component of the miner revenue, the transaction fees, is paid to the miners by the person senders on the network and is very variable.
It’s because the users only attach as much fee as is value it depending on the traffic conditions on the time. Blockspace is proscribed, so if there’s congestion present on the network, senders who want their transfers through first would must pay a high enough amount for the miners to prioritize them.
Typically, the transaction fee component of miner revenue tends to be much smaller than the block subsidy one. Below is the chart shared by the analyst, which shows how the Total Miner Revenue has modified for Bitcoin during the last several years.
Looks just like the value of the metric has gone up in recent months | Source: @AxelAdlerJr on X
As is visible within the graph, the Total Miner Revenue rose to a high level within the early months of 2024, nevertheless it suddenly collapsed around April. The explanation behind this plunge was the fourth Halving.
Halvings are periodic events occurring every 4 years on the Bitcoin blockchain that permanently slash the block subsidy in half. On condition that miners are depending on the block subsidy for his or her income, it’s not surprising that this event proves disastrous for his or her revenue.
From the chart, it’s apparent that the indicator has made some recovery through the previous couple of months as its value has now reached the $45 million mark. This remains to be significantly lower than the height from 2024, but is nonetheless high in comparison to the previous cycles.
This improvement within the Total Miner Revenue is partly because of increased activity on the blockchain, however the predominant factor is the worth appreciation that Bitcoin has witnessed. The block subsidy’s USD value naturally goes up because the asset’s spot price rises.
Interestingly, despite the revenue being at a big level straight away, the Hashrate, a measure of the whole amount of computing power that miners have attached to the blockchain, has actually been heading down.
The trend within the 7-day average BTC Hashrate over the past 12 months | Source: Blockchain.com
The Hashrate may be considered a mirrored image of the sentiment among the many Bitcoin miners and in the mean time, it could appear that these chain validators are being cautious as they’ve paused their expansion, potentially because they need to see how the BTC bull run would come out of the present uncertain period.
BTC Price
Bitcoin has been volatile through the last couple of days as its price has seen large swings in each directions. At present, the coin is heading up with its price crossing $105,000.
The value of the coin appears to have seen overall flat movement recently | Source: BTCUSDT on TradingView
Featured image from Dall-E, Blockchain.com, chart from TradingView.com