James Bennett, CEO of ByteTree, provided the latest onchain insights and observations from the past week in the BTC markets. This week, Bennett focused on onchain data from the mining industry.
(41:19) Miner revenues are above April levels, and fees remain high.
(41:21) “Miners over the last month or so have been earning around $11 million-$12 million per day in revenues. This is really good news for the network after the Bitcoin…the last halving in May saw the block reward drop from $100,000 per block to $50,000 per block.”
(41:59) Fees as a percentage of revenue currently sit at around 10%.
(42:02) “Now while this is positive for the long run, in terms of creating an incentive for miners to be active on the network, it’s slightly concerning from a usability point of view. In my view, it’s good to see fees at around 2-5% of total revenues. But when we get to around 10%, it can act as a disincentive to users who might seek other payment networks like Litecoin or Dash in order to send their transitions,” said Bennett.
(43:18) “Around every 10 minutes, this is how much a miner receives in revenue. We can see that that’s been trending up since the May ‘20 halving and currently sits around $80,000 per block.”
(44:27) Bitcoin block times were consistently below the 10 minute target in Q3 2020.