May 24, 2024
Bitcoin Miners Earn Record $107 Million on Halving Day
Bitcoin Halving

Bitcoin Miners Earn Record $107 Million on Halving Day

Bitcoin mining revenue soared to unprecedented heights on April 20, 2024, as miners raked in a staggering $107.7 million in rewards and transaction fees. This milestone marked the first time mining revenue exceeded the $100 million mark in a single day, fueled by the excitement surrounding Bitcoin’s halving event.

Investors Splurge $2.4 Million in Fees to Secure Space on Halving Block

Source: blockchain.com

More than 3,000 investors eager to etch their mark in Bitcoin’s history shelled out 37.7 BTC, equivalent to $2.4 million, solely in fees to secure a spot on block 840,000. This surge in transaction fees was fueled by the desire to participate in the halving event, which reduced mining rewards by half for the fourth time in Bitcoin’s history.

Runes Protocol Sparks Fee Frenzy

The record-breaking fees were largely attributed to the fervor surrounding the Runes Protocol, launched by Bitcoin Ordinals creator Casey Rodarmor concurrently with the halving. Users raced to inscribe rare satoshis on the halving block, driving transaction fees to unprecedented levels.

Source: Mempool.space

Price Surge Drives Revenue Spike

The surge in mining revenue paralleled Bitcoin’s market price, which had recently hit a high of $65,990 per BTC. The previous all-time high revenue of $78.7 million on March 11 correlated with Bitcoin’s price reaching $71,415.

Halving Triggers Fee Drop

Following the halving event, average transaction fees on Bitcoin experienced a sharp decline. Just a day after peaking at an average of $128 on April 20, fees plummeted to $8–$10 for medium-priority transactions on April 21.

Source: YCharts

Outlook on Transaction Fees

Despite the frenzy surrounding the halving, transaction fees have returned to more manageable levels post-event. However, the excitement and speculation surrounding Bitcoin continue to drive fluctuations in mining revenue and transaction fees.

Conclusion 

Bitcoin’s halving events serve as critical milestones for the cryptocurrency, impacting both miners and investors alike. As the ecosystem evolves, the dynamics of mining revenue and transaction fees will continue to shape the future of Bitcoin.

Image by freepik

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