Bitcoin Miners Push Hash Rate to Record Highs Despite Falling Revenue

The Bitcoin mining industry is showing strong commitment despite facing financial challenges. According to Glassnode, a prominent crypto market intelligence platform, Bitcoin miners drive the network’s hash rate to new all-time highs. The recent Glassnode report shows that miners are actively staking for the Bitcoin network, with the current hash rate at 666.4 EH/s, which is 1% below the record level.

This high hash rate shows miners constantly improve their hardware, demonstrating their commitment to the Bitcoin protocol. The higher hash rate also implies the growth of the network’s mining complexity, which is at the second highest level on record. Currently, to solve one block, you need nearly 338,000 exahashes, which best exemplifies the competitiveness of Bitcoin mining.

Bitcoin Mining Revenue Drops 21.9% from Peak Amid Low Transfer Fees

However, the revenue for miners has reduced drastically. As for mining revenues were observed at their highest values in March in conjunction with the highest Bitcoin price. Since then, revenue has significantly declined mainly because of lower traffic in monetary transfers and decreased commissions for specific product types like Inscriptions and Runes. Today, block subsidies amount to $824 million and $20 million are generated from transfer fees. This, in opposition to the previous all-time high, now lies at a significant 21.9% below these levels, exerting more financial pressure on miners.

Some miners tend to sell most of the Bitcoin produced to cover production expenses, potentially putting more sell-pressure on the market if the Bitcoin market remains weak. There has also been reduced investor interest, evidenced by lower trading volumes, especially in exchanges, and outflows from Bitcoin and Ethereum ETFs.

Finally, while miners drive the hash rate as high as ever, their revenue is depressed, and investors are disinterested. This situation highlights that the mining industry faces difficulties equally due to volatile market trends.