Declining transaction fees contribute to revenue decrease
Bitcoin (BTC) miners have been experiencing a consistent decline in revenue following the halving event, coinciding with a drop in the average transaction fee on the network.
According to data provided by YCharts, the average transaction fee on the Bitcoin network has fallen by 28% in the past 24 hours, currently sitting at around $24.99.
The data also reveals that the average Bitcoin transaction fee surged from $19.76 to $128.45 between April 19 and 20. It’s worth noting that just a month ago, the transaction fee was as low as $5 and even dropped to $2.8 on April 6.
In addition to the declining transaction fees, the daily revenue of Bitcoin miners has also been decreasing since the network’s block reward was cut in half. YCharts data indicates that miners’ earnings dropped by 5.1% on April 22, reaching $48.17 million per day.
Despite this downturn, the daily revenue of BTC miners has still increased by 87% over the past 365 days. On April 23, 2023, their earnings stood at $25.7 million.
According to Santiment, miners currently hold a total supply of 1.86 million BTC.
The decrease in BTC production has also resulted in decreased price volatility for the asset.
At the time of writing, Bitcoin is up by 0.15% in the past 24 hours and is trading at $66,175. Its market cap is around $1.3 trillion, with a daily trading volume of $24.7 billion.
Santiment’s data further reveals that the Bitcoin network value to transaction (NVT) ratio has declined from 174 to 88 in the past 24 hours.
This indicator suggests that Bitcoin is slightly undervalued at its current price point, as an NVT ratio higher than 100 would indicate overvaluation.
