The Bitcoin sell-off has been a priority since the weekend. This has translated into falling prices for digital assets. Another way to make an impact is miner fee income. Typically, these transaction fee revenues have been low. But with the recent sell-off sparking a surge in daily transaction volume, the result is that miners are getting more in terms of transaction fees.
Bitcoin daily income plummets
Despite the surge in miner fee revenue, daily miner revenue has not followed suit. Even with the increase in on-chain activity, revenue was still lower than the figures recorded the previous week.
The increase in trading volume is a direct result of the high volatility recorded in the market. As always, when volatility is so high, investors usually move their tokens, mostly to sell, to avoid taking more losses in the market. This made the daily trading volume increase by as much as 63.48% in one week. The average transaction value undoubtedly had the biggest impact on this, with an increase of 66.38% over the same period.
BTC hashrate on the rise | Source: Arcane Research
Daily trading volume is now at $8.3 billion, up from $5.06 billion the previous week. Miners’ daily revenue fell 9.17% to $33.86 billion last week from $37.28 billion the previous week.
The cost per day also increased by 28.81%. This resulted in an increase from $421,137 to $542,486. This puts transaction fees as a percentage of miner revenue at 1.6%, one of the highest levels on record in 2022.
Mining difficulty rises
The miner’s block rate has been on the rise for the past few weeks. However, starting last week, it started to crash. It was down 2.15% from 6.36 blocks per hour in the previous seven days and is now at 6.23 blocks per hour last week.
BTC crashes below $30,000 | Source: BTCUSD on TradingView.com
Despite this, the block rate for Bitcoin miners is still high, as the previous target was 6 blocks per hour. With such a high block rate, mining difficulty is expected to rise another 4% to 5% by Wednesday.
Related reading | Market Downtrend Triggers Bitcoin Inflows from Institutional Investors
Bitcoin’s hash rate continues to remain elevated and has not been negatively impacted by the recent market crash. The average transaction volume per block fell from 1,806 to 1,774 in the past week, a drop of 1.75%.
Featured image from Business Today, charts from Arcane Research and TradingView.com