{"id":78184,"date":"2024-05-07T03:34:09","date_gmt":"2024-05-07T07:34:09","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=78184"},"modified":"2024-05-07T03:34:51","modified_gmt":"2024-05-07T07:34:51","slug":"bitcoin-based-apps-drive-miners-income","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/bitcoin-based-apps-drive-miners-income\/","title":{"rendered":"Bitcoin-Based Apps Drive Miners’ Income"},"content":{"rendered":"\n

The increase in transaction fee revenue for Bitcoin miners<\/a> can be attributed to new token protocols such as Ordinals and Runes.<\/p>\n\n\n\n

\"Bitcoin-Based<\/figure>\n\n\n\n

The fourth Bitcoin halving event has resulted in a 50% reduction in miners' earnings. <\/p>\n\n\n\n

However, the increase in decentralized application (dApp) activity on the Bitcoin blockchain has sufficiently alleviated the financial burden on miners. <\/p>\n\n\n\n

Bitcoin Miners Gain Revenue<\/h2>\n\n\n\n

The CEO of CryptoQuant, Ki Young Ju, emphasized a substantial transformation in the revenue sources for miners due to the emergence of applications on the Bitcoin network. <\/p>\n\n\n\n

Ju reports that transaction fees have increased significantly from 1% of miners' total revenue two years ago to over 7% at present. <\/p>\n\n\n\n

It is expected that this pattern, which has endured for the last four weeks, will strengthen the foundational aspects of the network in the future.\u00a0<\/p>\n\n\n\n

\n

Building apps on #Bitcoin\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> has significantly changed miners' income streams.

Transaction fees now account for over 7% of their total revenue, up from 1% two years ago.

This trend has persisted for the last four weeks and could potentially strengthen the network's fundamentals. pic.twitter.com\/YVbdmLXB5c<\/use><\/svg><\/span><\/a><\/p>— Ki Young Ju (@ki_young_ju) May 7, 2024<\/use><\/svg><\/span><\/a><\/blockquote>

The increasing transaction fee revenue can be attributed to innovative token protocols such as Ordinals and Runes, which have enhanced Bitcoin's utility. <\/p>\n\n\n\n

As a result of these developments enabling the generation of fungible and non-fungible tokens<\/a> on the network, the volume of transactions has increased.\u00a0<\/p>\n\n\n\n

Fixed block subsidies and user-paid transaction fees comprise Bitcoin Miner's revenue. <\/p>\n\n\n\n

Constraints on block rewards result from programmable halving events. <\/p>\n\n\n\n

However, with the increasing proportion of transaction fees to revenue, they can offset the declining profit margins caused by each halving. <\/p>\n\n\n\n

BTC Miners Feel The Heat<\/h2>\n\n\n\n

Transaction fees of over $80 million bolstered miner revenue the day after the halving. <\/p>\n\n\n\n

The average transaction fee on the Bitcoin network increased to $40 during the height of runes activity, but it has since declined to less than $10 as network activity has returned to normal. <\/p>\n\n\n\n

However, as transaction costs have returned to their customary levels, the aggregate miner revenue has dropped below $5 million, exerting strain on the miners. <\/p>\n\n\n\n

At $0.048 (an all-time low), the seven-day moving average of Bitcoin miner revenue per terahashes per second (TH\/s) has dropped precipitously. <\/p>\n\n\n\n

On the other hand, Bitcoin mining companies continue to rejoice on Wall Street. <\/p>\n\n\n\n

The stock of Bitcoin mining companies has experienced a recent upswing in tandem with the current recovery on Wall Street. <\/p>\n\n\n\n

Conversely, prominent Bitcoin mining entities such as Marathon Digital<\/use><\/svg><\/span><\/a> have been implementing significant modifications to increase mining activity and increase their market share.\u00a0\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

The increase in transaction fee revenue for Bitcoin miners can be attributed to new token protocols such as Ordinals and Runes. The fourth Bitcoin halving event has resulted in a 50% reduction in miners’ earnings.  However, the increase in decentralized application (dApp) activity on the Bitcoin blockchain has sufficiently alleviated the financial burden on miners.  […]<\/p>\n","protected":false},"author":56,"featured_media":78187,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[8762,754,8700],"class_list":["post-78184","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitcoin-miner-2","tag-bitcoin-mining","tag-marathon-digital"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/05\/Bitcoin-Based-Apps-Drive-Miners-Income.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/78184","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=78184"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/78184\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/78187"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=78184"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=78184"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=78184"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}