BTC Miners' Revenue Drops Sharply, Transaction Fees Plummet

BTC Miners' Revenue Drops Sharply, Transaction Fees Plummet

BTC Miners' Revenue Plummets After Halving, Transaction Fees Drop According to a recent analysis by The Block Research, the daily revenue of Bitcoin (BTC) miners has experienced a significant decline since the halving in May 2020. As of September 13, miners' daily revenue stood at $25.35 million, with only about $0.4 million coming from transaction fees. This represents a mere 1.6% of the total revenue. The decline in transaction fee revenue is attributed to the decreased demand for Ordinals and Runes, a BRC-20 alternative protocol, which had previously driven up transaction fees. The drop in demand for these non-fungible token (NFT)-related activities has led to a reduction in the number of transactions on the Bitcoin network, resulting in lower transaction fees. Impact on Miners The decline in revenue has raised concerns among miners, as it may lead to profitability challenges. Miners rely heavily on transaction fees to supplement their income, especially during periods of low block rewards. The reduced demand for Ordinals and Runes has significantly impacted miners' revenue streams. Market Outlook The future trajectory of BTC miners' revenue depends on various factors, including the overall health of the cryptocurrency market, the demand for Bitcoin transactions, and the development of alternative revenue streams for miners.