On-chain data shows that Bitcoin miners currently earn more than $50 million per day. Is this close to the record?
Bitcoin miner revenue has surged recently
In a new post on X, Cryptoquant writer Axel Adler JR talks about the latest trends in Bitcoin miner revenue. Miners on the BTC network earn income in two ways: block subsidies and transaction fees.
The first is block subsidy, which refers to the rewards of these chain validators as compensation for adding blocks to the chain. This reward is given as a fixed BTC amount, and the rewards that miners can receive are more or less fixed. Therefore, the only variable associated with it is the price of the asset itself.
Another part of miners’ income is transaction fees, which are payments miners receive from every sender on the network. This amount is attached to the user when sending transactions on the blockchain. The total transaction fees received by miners on any day vary according to the amount of activity present on the chain.
When Mempool is crowded, users who want to transfer have no choice but to pay above average fees to provide a caution for validator priority. Since many senders compete with each other in this way, transaction fees can witness the peak.
In most cases, transfer activity is not too high on the Bitcoin network, so miners end up relying on Block subsidies to earn most of their income.
Now, here is a chart shared by analysts showing the trends in total BTC miners’ revenue over the past few years:
Looks like the value of the metric has gone up in recent weeks | Source: @AxelAdlerJr on X
As shown in the chart above, Bitcoin miners’ income fell earlier this year, as a result of falling asset prices, reducing the dollar value of the company’s subsidies. Investors tend to lose interest during the downward period, so a decline in transfer fees may also lead to loss of income.
Recently, miner income has rebounded naturally as cryptocurrencies have reappeared. These chain validators now make about $51.6 million a day.
While this income level is certainly not low, it is far from the $80 million peak that the Bulls ran last year and 2021. “This shows that the peak levels of network activity are high: miners have generated considerable income, but there is still room to return to their previous highs.”
BTC price
Bitcoin is now sitting at the doorstep of a new all-time high, as its price is about $110,000.
The price of the coin seems to have bounced back during the last couple of days | Source: BTCUSDT on TradingView
Featured images from dall-e, charts from cryptoquant.com, tradingview.com
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