Bitcoin (BTC) miners raked in a whopping $184 million in transaction fees in Q2, far more than they’ll earn in all of 2022 as Bitcoin price soars and BRC-20 tokens boom .
The $184 million in spend represents an increase of more than 270% over the first quarter of 2023 and the first quarter since the second quarter of 2021 to break the $100 million mark. according to A report published by cryptocurrency analytics platform Coin Metrics on July 5.
Bitcoin miners receive a transaction fee every time a new block is verified, and the amount of the transaction fee is determined by the amount of data and the user’s demand for block space.
Coin Metrics said the fee increase was due to “revenue” boosted by bitcoin’s recent price surge and the emergence of BRC-20, a new bitcoin coin standard launched in March that uses the Ordinals inscription to mint on bitcoin and transfer fungible tokens. network, add:
“Token Standards really unlock experimental new use cases for Bitcoin core transaction types and accelerate the process of scaling Bitcoin over the Lightning Network.
It’s worth noting, however, that transaction fees accounted for only 7.7% of miners’ $2.4 billion in total revenue during the quarter.
The remainder comes in the form of Bitcoin block rewards, currently miners are rewarded 6.25 BTC for solving each block. After the network’s next halving cycle, which is expected to happen in May, this figure will drop to 3.125 BTC.
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Bitcoin miners had other reasons to celebrate in the second quarter, the company said.
In May, the Bitcoin mining industry “won the victory” as the Biden administration’s proposed Digital Asset Mining Energy (DAME) tax was blocked.
In this special edition of State of the Network, we take a data-driven look at the most important events impacting the digital asset industry from Q2 2023 onwards.
Get insights here: https://t.co/xpcE27j1Fz#Future of Finance #put the truth into practice pic.twitter.com/67RDHKA2bT
— CoinMetrics.io (@coinmetrics) July 5, 2023
Coin Metrics noted that macroeconomic conditions for bitcoin miners were also accommodative during the quarter, with “subdued inflationary pressures” meaning lower electricity prices for U.S. miners.
However, as Bitcoin’s hash rate continues to hit all-time highs over the past 12 months, competition in the mining fee market has also intensified, Coin Metrics explained:
“Competition remains as fierce as ever, with Bitcoin’s hashrate hitting a new high of 375 EH/s this quarter (…) We’re seeing continued efficiencies across the network with the adoption of modern ASICs like the S19 XP.”
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