Bitcoin miners diversify and consolidate to survive revenue drop

Miner revenue per exahash measures miners’ daily income relative to their contribution to the network’s hash rate, showing how much miners earn per unit of computational power they contribute. This metric is important because it reflects the profitability and economic viability of Bitcoin mining, directly influencing decisions on resource allocation, investment, and operational strategies. Given […]

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Bitcoin Miner Revenue Grows By 7%. Here’s How Much They Made

Bitcoin miner revenue is once again on the rise. This time around, the miners have seen a significant bump in their returns from their mining activities in the space of a single week. This increase in revenue coincides with the increase in the hash rate coupled with a rise in the number of transactions carried out in a day. Daily fees have dropped during this time though, so let’s take a look at the numbers. Bitcoin Miner Revenue Jumps The previous week, bitcoin miner revenues had come out to a little over $36.5 million daily recorded on the part of the miners. This is not a bad figure per se but last week’s numbers have shown that there is room for improvement. Related Reading | Small Cap Altcoins Continue To March Ahead Of Bitcoin And Ether Gains Miner revenue had grown a total of 7.3% during this time to a total of $39,177,835 in daily revenues in the third week of March. These numbers come despite a drop in the daily fees accumulated during the week. While the previous seven days had seen daily fees hit as high as $391,669, last week’s numbers came out lower at $381,999 fees per day, leading to a 2.47% in this metric. BTC price slips below $43,000 | Source: BTUCSD on TradingView.com The daily transaction volume had been on the rise though. $5,826 (In billions) in daily transaction volumes was recorded, up from $5,419 (In billions) the previous week, marking a 7.50% increase, the highest increase recorded for the week. Transactions per day had grown 3.26% from 247,906 to 255,993. Not a high value, so the increase in on-chain transaction volumes is said to be caused by the 4.11% increase that was recorded in the average transaction value, rising from $21,859 to $22,757. Hash Rate Takes A Leap The increase in the miner revenue has also come with an increase in the bitcoin hash rate. The hash rate which had seen s a decline from its late February/early March highs had once again begun to pick up during the past week. The network saw mining difficulty reduced by 0.4% the previous week, which coincided with the increase in the hash rate. As mining difficulty has increased, there has now been a jump in the average block production per hour since then, growing 2.725 from 6.13 average blocks to 6.29. BTC hash rate recovers as March draws to a close | Source: Arcane Research As the block production rate continues to tether on the high side, it is expected that mining difficulty could continue to go up in tandem. An estimate from CoinWarz who’s that this adjustment could reach as high as a 7.5% increase. Related Reading | Bitcoin Almost Hits $44,000 With Terra $125 Million BTC Purchase Tempo Up Following the theme of the week, the average number of transactions per block also increased from 1,642 to 1,695. This represents a 3.26% increase from the previous week. Featured image from CoinDesk, charts from Arcane Research and TradingView.com

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Despite Red Bitcoin, On-Chain Signals Flip Green

Bitcoin on-chain signals have remained green despite the recent red week. Bitcoin’s price had taken a plunge towards $40K and had brought a lot of losses with it as billions of dollars in long positions were liquidated on December 4th in one of the sharpest declines of the year. Mostly this has brought down a number of metrics associated with the asset but on-chain signals remain resistant. On-chain data all ranging from miner revenues, transaction fees, hashrate, and daily transaction volumes have all shown positive trends for bitcoin. None of this has been affected by the price decline. Related Reading | Number Of Bitcoin Lightning Network Nodes Jumps 23% In Three Months Hashrate Continues Recovery Trend Bitcoin hashrate had taken a big heat with the China crackdown on mining that took place earlier in the year. The region had gone from providing about 70% of the mining power to almost zero in a matter of weeks, leaving the hashrate to suffer greatly. This has since been rectified as bitcoin miners have found new locations to resume their mining activities. BTC hashrate recovers post-market crash | Source: Arcane Research Since then, hashrate has been gradually picking back up and in the past week saw a significant increase. Bitcoin hashrate is up for the past seven days after the first difficulty reduction following ten difficulty adjustments. As the difficulty has dropped, so has the profitability of mining activities increased. Given this, more miners have gotten back in the game and set up their mining rigs once more, leading to a rise in hashrate. Arcane Research also reported that this increased hashrate has led to an increase in block production rate. As more miners come back on board, an average of 6.46 blocks have been created each hour in the past week. This represents a significant increase of 11% in the same time frame. BTC loses footing at $50,000 | Source: BTCUSD on TradingView.com Bitcoin Transaction Fees Rise Bitcoin transactions fees have remained low through the past weeks, but there was a recorded increase in fees in the past seven days. On average, bitcoin transaction fees grew by 33%. This growth however does not do much for miner revenue. Even though fees are up, they are still relatively meager and only bring in about 1.7% of the total miner revenues. Related Reading | Majority Of Bitcoin Investors Got In This Year, Says Grayscale Average transaction value also jumped in the past week. As investors rushed to sell their holdings during the crash, the average transaction volume climbed by 8.3%. This was mostly due to holders who hold larger volumes moving their BTC to exchanges to sell, not only increasing average transaction volume, but also transaction fees at the same time. Bitcoin daily miner revenues in the first week of December was $52,271,223 compared to daily revenues of $49,975,895 from the previous week. Fees per day, as well as transactions per day, were up at $891,499 and 276,680 respectively. Featured image from PSU Watch, charts from Arcane Research and TradingView.com

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