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Bitcoin miner revenue from fees declines amid a drop from $30k

source-logo  crypto.news 19 April 2023 08:17, UTC

Bitcoin (BTC) miners are witnessing a significant decline in revenue generated from transaction fees amid the asset’s drop from the highly-coveted $30,000 price point. This metric suggests that market participants are paying fewer transaction fees on the bitcoin network.

The percentage of miners’ revenue generated from transaction fees has plummeted to a 1-month low of 2.516%, per data from a Glassnode chart. The chart reveals a steep decline in this metric observed since the beginning of this month.

📉 #Bitcoin $BTC Percent Miner Revenue from Fees (7d MA) just reached a 1-month low of 2.516%

Previous 1-month low of 2.521% was observed on 18 April 2023

View metric:https://t.co/NphJIZNcsL pic.twitter.com/dbfJxUA1R3

— glassnode alerts (@glassnodealerts) April 19, 2023

Notably, this metric does not reflect the total revenue generated from miners but the percentage of this revenue from transaction fees on the Bitcoin network. Bitcoin miners typically generate revenue from transaction fees and block rewards.

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Block rewards make up most of the revenue miners generate, and they are accrued when a miner successfully adds a block to the network. Transaction fees are paid by users looking to get their transactions on the network prioritized. A decline in transaction fees indicates that the network is less congested and users pay less for transactions.

Despite this decline, miner revenue remains on the high side. The latest data from Glassnode indicates that miner revenue hit a 10-month high of $2.5 million as of April 11. Moreover, according to CryptoQuant, Miner Reserve, the amount of BTC held by miners’ wallets has increased to 1.834 million tokens, valued at $55.3 billion.

📈 #Bitcoin $BTC Miner Revenue just reached a 10-month high of $2,501,566.45

Previous 10-month high of $2,374,558.89 was observed on 23 March 2023

View metric:https://t.co/UYhnd9eeZH pic.twitter.com/xUIoMYWc0j

— glassnode alerts (@glassnodealerts) April 11, 2023

Bitcoin plummets to $29,000

These metrics prevail amid the asset’s decline to $29,000. BTC plummeted to the $29,000 mark earlier today for the first time since April 10. The bulls have persistently driven its price back above $30,000 following occasional drops engineered by the bears over the past week.

Following the drop to $29,000, BTC has staged a comeback in an attempt to reclaim $30,000 once again. Amid this battle, long-term holders have continued to retain their bags. Per data from Glassnode, the percentage of BTC supply last active in at least two years has surged to an all-time high of 53.417%.

📈 #Bitcoin $BTC Percent Supply Last Active 2+ Years just reached an ATH of 53.417%

View metric:https://t.co/QABODbVlQG pic.twitter.com/bFOFPdc4FT

— glassnode alerts (@glassnodealerts) April 19, 2023


Bitcoin is changing hands at $29,277, down 2.4% in the past 24 hours, with its technicals flashing buy signals. Moreover, the BTC Coinbase Premium Index reveals a high buying pressure on US institutional investors.

Read more: Bitcoin has been ‘buried’ over 470 times in 14 years: a review of obituaries
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