Following the latest halving event, the percentage of Bitcoin miner revenue generated from transaction fees has seen a significant decrease. According to a recent report from CryptoQuant, transaction fees now only account for 35% of total miner revenue, a stark difference from the 75% recorded just days before the halving took place.
The fourth Bitcoin halving event occurred recently, resulting in a halving of miner block rewards to 3.125 bitcoins (BTC). This led to a decrease in daily issuance from an average of 900 BTC to 450 BTC. On the day of the halving, daily miner revenue saw a spike, reaching $100 million. This surge was primarily driven by a notable increase in transaction fees, which hit an all-time high of 1,258 BTC ($80 million) for that day alone, representing 75% of the total revenue.
One significant factor contributing to the heightened transaction fees was the introduction of the Runes protocol, which spurred network activity post-halving. Runes enables the issuance and transfer of fungible tokens by storing data in OP RETURN codes. On the day of the halving, the use of these codes reached a peak of 512,000 as users embraced the protocol. However, within a day after the halving, transaction fees returned to more typical levels and have since remained there.
Currently, transaction fees make up 35% of total miner revenue, with the latter hovering around $50 million. This marks a 35% decline from the pre-halving record highs of approximately $78 million. Data from YCharts shows that Bitcoin transaction fees have decreased from $80 million on April 20 to $6 million, with an average of $16 million over the past week and a low point on April 26.
With transaction fees on the decline and BTC prices struggling to surpass $64,000, miners are confronted with the challenge of sustaining their operations. The halving of block rewards has placed additional pressure on miners, making it increasingly difficult for some to continue their operations. While some miners may be forced to exit the market due to these challenges, it is too early to determine any long-term effects on the overall network hashrate.
The Bitcoin network continues to navigate the aftermath of the recent halving event, with transaction fees playing a crucial role in sustaining miner revenue. The decline in transaction fees post-halving highlights the importance of fee sustainability and the challenges faced by miners in maintaining profitability in the current market environment.
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