The recent CryptoQuant report has shown a significant drop in the portion of Bitcoin miner revenue generated from transaction fees. After reaching a peak of 75% on April 19, transaction fees now only account for 35% of total miner revenue. This decline comes after the most recent halving event, which saw miner block rewards cut in half to 3.125 bitcoins (BTC).
Following the fourth Bitcoin halving, which occurred last Friday, the daily issuance of Bitcoins dropped from an average of 900 BTC to 450 BTC. On the day of the halving, daily miner revenue skyrocketed to $100 million, fueled by a surge in transaction fees. At one point, daily fees on the Bitcoin network reached 1,258 BTC ($80 million), representing 75% of total revenue for that day.
One of the main drivers behind the spike in transaction fees was the Runes protocol, which saw a surge in network activity following its launch on the Bitcoin halving block. Runes permits the issuance and transfer of fungible tokens by storing data in OP RETURN codes. The usage of these codes hit a record high of 512,000 within 24 hours of the halving, as users flocked to the Runes Protocol.
Despite the initial surge in transaction fees, they quickly returned to lower levels after the halving event. Currently, fees make up 35% of total miner revenue, which now stands at around $50 million. This marks a considerable 35% decline from the pre-halving record-high levels of approximately $78 million.
Current State of Bitcoin Transaction Fees
YCharts data indicates that Bitcoin transaction fees have plummeted from $80 million on April 20 to $6 million. In the past week, fees have averaged around $16 million, with the lowest figure recorded on April 26. These declining transaction fees, coupled with the struggle of BTC to surpass $64,000, may put pressure on miners and potentially force some out of the market.
Long-Term Effects and Network Hashrate
While some miners may be facing challenges, it is too early to determine the long-term impacts of the halving on the network hashrate. Currently, miners seem to be maintaining their operations at a similar rate as before the halving. The Bitcoin network hashrate stands at 617 EH/s, with the hashprice at $0.07 per TH/s, the lowest level since October.