Impact of Bitcoin Halving on Miner Revenue: Transaction Fees Decline Significantly

The recent Bitcoin halving event has had a significant impact on miner revenue, with transaction fees playing a key role in the fluctuations. According to a recent report by CryptoQuant, transaction fees now make up 35% of total miner revenue, a sharp decline from the 75% recorded on the day of the halving.

The fourth Bitcoin halving, which occurred last Friday, cut miner block rewards in half to 3.125 bitcoins, leading to a decrease in daily issuance from 900 BTC to 450 BTC. On the day of the halving, miner revenue spiked to $100 million, driven by a surge in transaction fees. Daily fees on the Bitcoin network reached 1,258 BTC, totaling $80 million and representing 75% of total revenue for that day.

One of the main drivers of the high transaction fees was the Runes protocol, which saw a record number of users on the halving day. However, in less than 24 hours after the halving, transaction fees returned to lower levels and have since remained there. Currently, fees make up 35% of total miner revenue, which now stands at around $50 million, a 35% decline from pre-halving levels.

While higher transaction fees and increasing BTC prices may help miners stay afloat following the halving, some may be forced to quit if fees continue to plummet. Despite this, CryptoQuant suggests that it is too early to see any long-term effects on the network hashrate, as miners are currently operating at a similar rate as before the halving. The Bitcoin network hashrate is at 617 EH/s, with a hashprice of $0.07 per TH/s, the lowest since October.