Bitcoin Halving Spurs Temporary Surge in Miner Fees: CryptoQuant

Bitcoin Halving Impact on Miner Revenue

Following the fourth Bitcoin halving, the issuance of Bitcoin dropped from 900 to 450 per day. This resulted in miners experiencing a surge in daily revenue, reaching over $100 million. CryptoQuant, an on-chain data analytics firm based in South Korea, reported that this spike was mainly due to record-high transaction fees.

Record-High Transaction Fees

In a weekly research note, CryptoQuant highlighted that transaction fees reached $80 million on the halving day, equivalent to 1,252 Bitcoin. This accounted for 75% of the total miner revenue for that day.

Bitcoin Issuance and Revenue Decline

With the halving reducing the issuance of new Bitcoin per block to 3.125 Bitcoin, the average daily issuance dropped to 450 Bitcoins. While daily revenue initially peaked at $100 million, it has since decreased to around $50 million, representing a 35% decline from the pre-halving levels.

Impact on Network Hashrate

Despite the halving, the network hashrate has remained relatively stable, hovering around 617 EH/s. This indicates that miners are maintaining their operations at a similar pace to before the halving.

• Hashrates and Their Significance: Hashrates reflect the computing power dedicated to mining a cryptocurrency, influencing the chances of winning rewards.
• Network Hashrate and Miner Revenues: The high network hashrate post-halving has led to a decrease in hashprice for miners, currently at $0.07 per TH/s, the lowest since October 2023.

Bitcoin Price Performance

Prior to the 2024 halving, Bitcoin witnessed a significant rally. The cryptocurrency’s price surged by 52% since the beginning of the year and recorded a remarkable 134% increase over the past twelve months. Bitcoin reached a peak on March 13, 2024, setting a new record high at $73,605.