Since the recent Bitcoin block reward halving, there have been ample developments in the BTC space. Miners are still throwing hardware at the network, even though their earnings from fees keep declining.
Mining Revenue Changes Post-Halving
It was to be expected that the recent Bitcoin block reward halving would affect miners in one way or another. Whereas most predicted a decrease in hashrate, that situation hasn’t changed all that much.
What has changed, however, is how mining revenue is constructed. A significant decrease in transaction fee revenue makes this whole ordeal look very differently.
Since late May 26, 2020, there has been a slow and steady decline in fee revenue. Transaction costs haven’t represented more than 15% of miner earnings since then.
On some days, the percentage even dropped as low as 4% or slightly higher. That in itself is remarkable, especially when considering how the network hashrate isn’t decreasing.
Keeping an eye on the total network transaction fees is also interesting. Overall, these fees have dropped below $250,000 per day on a regular basis.
This is despite there being an average of 311,726 confirmed transactions per day. It would indicate that overall network fees are coming down, albeit there is still an average of $2,594 in fees per Bitcoin block. A significant amount, all things considered.
Bitcoin Hashrate Keeps Fluctuating
Earning less from transaction fees can make it difficult for Bitcoin miners to break even. Under those circumstances, one would expect more miners to turn off their hardware. Looking at the charts for the past month, there have been ample fluctuations in hashpower.
At its lowest point, there was under 80 exohash per second pointed at the Bitcoin network. At its peak, over 174.4 exohash per second was recorded. It is a rather steep discrepancy, although the chart seems to even out near 111 exohash per second. The hashrate has dropped a bit today, though, and it is not moving to BTC fork Bitcoin Cash either.