Data shows the growth in the Bitcoin miner revenues has slowed down during the past week as the price of the crypto has been moving sideways.
Bitcoin Miner Revenues Rose During The Last Seven Days, But By Only 1.6%
As per the latest weekly report from Arcane Research, the BTC miner revenues have now stagnated after observing some significant growth recently.
Here is a table that shows how the metrics related to Bitcoin miners have changed during the past week:
Looks like the average transaction value has fallen over 15% in this period | Source: Arcane Research's The Weekly Update - Week 31, 2022
As you can see above, the daily Bitcoin miner revenues are around $21.9k right now, about 1.6% more than the $21.5k value from a week ago. This growth is pretty small when compared to the days before.
On July 17th, the revenues had crashed down to just $17 million, which was the lowest value in a year. However, the metric’s value started to rise up shortly after and reached $21.8 million by July 28th.
Compared to that, the miner revenues have barely seen any movement in the last week or so. There are two reasons behind this trend.
The first, and the more relevant one, is the fact that the price of Bitcoin itself has encountered stagnation in recent days.
While miners’ block rewards are mostly fixed, the USD value of the BTC they receive isn’t. Since miners usually pay their running costs in dollars, this USD value is the more important metric for them.
A lack of improvement in the price of the crypto means the daily miner revenues don’t see any significant movement either.
The other reason behind the trend is the 1.7% mining difficulty increase that the Bitcoin network observed on last Thursday.
The difficulty depends on a metric called the “hashrate,” which is a measure of the total computing power connected to the network.
When the hashrate rises up, so does the difficulty of the blockchain as the BTC network aims to keep its block production rate constant (which would blow up otherwise as more miners connect to the chain).
The hashrate has started to go up a little recently, resulting in the latest upwards adjustment in the mining difficulty. As the below chart shows:
The value of the metric has recovered a bit from the plunge recently | Source: Arcane Research's The Weekly Update - Week 31, 2022
At the time of writing, Bitcoin’s price floats around $23k, up 1% in the past week.
BTC has erased its gains from two days ago | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Arcane Research