BTC miners see an 11% drop in revenue in September alone, generating $328 million according to the data from Coin Metrics that we have today in our bitcoin news.
The moderate decrease in revenue came right when Bitcoin started plummeting in September and closed the month down by 8% after previously gaining over 25% in July and August. The revenue estimates assume that miners sold their BTC right away. Network fees brought in about $26 million in September or about 8% of the total revenue which is a drop of 2 percent from the fees comprising 10% of the revenue in August.
The fees as a percentage of total revenue continue going upwards since April after the block subsidy halving back in May. The increases in fee revenue are quite important to sustain the network’s security as the block reward drops every four years. Bitcoin’s average transaction fees were moving between $1 and $5 through September and some crypto traders started rotating funds from altcoins into BTC so miners can hope for higher BTC prices and bigger revenue this month.
As BTC miners see drops in revenue, they enjoyed a 7% increase in revenue in July only, thanks to the higher network fees and increased transaction volume as Bitcoin increased to a new yearly high of $11,400. The BTC miners enjoyed a 7% increase or $300 million in revenue in July from $281 million in June which was the first monthly increase in miner revenue since April. The revenue estimates that the miners sold their BTC right away. The fees were also able to generate $25 million in July, surpassing the previous monthly high of 8.3% fee revenue in May.
The increased network fees and mempool size contributed to mining revenue increase as the BTC mempool which is a holding depot for verified transactions that have to be included in the blocks by the miners, increased by 11,000% since July. The average data fees increased by 300% as well from the end of June according to the data. The revenue for July increased and coincided with the rallies of the publicly traded mining companies since Riot Blockchain only gained 10% in July and closed the month at $2.62.The Beijing-based miner producer Canaan Inc gained 34% in July, closing at $2.50.
The BTC miners sold more coins as the difficulty rises. This metric measures how hard it is to compete for mining rewards while it hit 0.59% but that was not enough to push it over the 17 T level, raising it to 16.95 T.
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