In comparison to May, the revenue for Bitcoin and Ethereum miners has declined drastically. Bitcoin mining revenue for June has gone down by 42 percent and for Ethereum by 53 percent. The fall was brought about by the reducing hashrates in both networks.
Although the situation does not appear to be encouraging, the current revenue on mining for the networks remains above the value recorded for December 2020. Last month for Bitcoin, miners were able to accumulate a revenue of over $839 million as against the $1.45 million of May.
Miner revenue depends on the activity ongoing in the blockchain in question. If the activity is low, the miners have lesser work to do which inversely affects their revenue and vice versa. Since the difficulty in Bitcoin and the hashrate has run down by almost 50 percent, the lowering values resulted in a dull range in miner revenue generation.
Equally, transaction fees on both networks have been on the downside. Bitcoin transaction fees have fallen from nine percent to five percent this month with ETH seeing a six-month low. On-chain activity isn’t also encouraging as both networks witness figures that were only seen the previous year.
ETH Miner Woes
Ethereum is a much more expensive platform in comparison to Bitcoin. In essence, the decline in figures is worse on the network. The miner revenue on ETH for instance swooped down from $2.35 billion last month to $1.1 million in June.
On-chain transactions and gas fees on the second-largest cryptocurrency accounted for $166 million of the total revenue. Owing to the influence of BTC over other altcoins, the negative shift of Ethereum might be nearly impossible.
The Vitalik Buterin-led network is gearing to launch ETH 2.0 which would migrate the network from a proof-of-work protocol to a proof-of-stake consensus. Miners might exit the market or shift attention to other altcoins.