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Transaction fees have dropped significantly from $80 Million on the halving day to $6 Million as of April 26, affecting bitcoin miners.
Following the halving, there was a sharp increase in the fees for Bitcoin transactions, with a medium-priority transaction costing $146 and a high-priority transaction costing $170. However, the average fees for Bitcoin transactions have dropped considerably after the halving.
The Runes NFT collection was intended to sustain fee revenue post-halving, but the floor price for this collection has also decreased. Block fees increased on the day of the halving, more than compensating for the halved block subsidy that miners faced.
Miners Feel Post-Halving Woes
Transaction fees for Bitcoin have declined sharply a day after reaching a record average of $128 on April 20. Within 24 hours after the halving, transaction fees returned to lower levels.
Fees constitute 35% of total miner revenue, while the latter now hovers around $50 Million, a 35% decline from pre-halving record-high levels of roughly $78 Million.
According to Crypto Fees, Bitcoin has clocked $78.3 Million in total fees, beating Ethereum 24 times. The proportion of Bitcoin miner’s revenue from transaction fees has fallen considerably after surging on the day of the last halving event.
A CryptoQuant report has revealed that transaction fees now account for 35% of total miner revenue, a significant decrease from the 75% recorded on April 19. During the halving, transaction fees surged, as daily miner revenue spiked to $100 Million, with daily fees on the Bitcoin network reaching 1,258 BTC ($80 Million), a level never seen before, representing 75% of the total revenue for that day.
On the halving day, the transaction fees were significantly high, primarily due to the increased usage of the Runes protocol. The protocol witnessed an all-time high of 512,000 users who used it to issue and transfer fungible tokens. These tokens were transferred through OP RETURN codes for data storage.
Transaction Fee Lowest On April 26th
Bitcoin transaction fees have fallen from $80 Million on April 20 to $6 Million, according to YCharts data. Over the past week, they have averaged around $16 Million, with the lowest figure clocked on April 26.
Miners may benefit from increased transaction fees and BTC prices, as their block rewards have been reduced by 50%. However, as BTC struggles to surpass the $64,000 mark and transaction fees decline, some miners may be compelled to exit the industry.
Nevertheless, CryptoQuant has said it is too early to see any long-term effects of the halving on the network hash rate, as miners appear to be running their operations at the same rate. The Bitcoin network hash rate is at 617 EH/s, while its price is now at $0.07 per TH/s, the lowest since October.
Conclusion
Transaction fees now account for 35% of total miner revenue, a significant decrease from the 75% recorded on April 19. Bitcoin has clocked $78.3 Million in total fees, beating Ethereum 24 times. With fees plummeting and BTC struggling to move past $64,000, some miners may soon be forced to quit.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
