On-chain data shows that Bitcoin miners are making 12.4% of their revenue from the fees after transaction counts hit an all-time high.
Bitcoin Miner Revenue Share Of Transaction Fees Has Surged Recently
According to data from the on-chain analytics firm Glassnode, only 254 trading days in the entire history of the cryptocurrency have seen the transaction fees contribute a larger share to the total revenue of these chain validators.
There are mainly two components to the revenue that miners generate: the block rewards and the transaction fees. The block rewards are what this cohort receives as compensation for mining blocks on the Bitcoin network. These rewards always have a fixed value, with the exception of the halving events, following which they are permanently cut in half.
The transaction fees, on the other hand, can be highly variable, since it’s on the users of the blockchain to attach as much amount as they see fit. Generally, in periods of relatively little traffic on the network, the fees remain low. This is because there is enough capacity on the chain that their transfer should go through relatively quickly even with low fees.
However, things get different when the network becomes active. Miners can only handle a limited amount of transactions at once, so they start prioritizing transfers with a larger amount of fees. In order to compete with other users in getting their transactions through faster, senders begin attaching high fees.
In times like these, the average fees can naturally spike, and so, the percentage of the miner revenue that they make up for surges. Recently, such market conditions have again formed.
The below chart shows how the current percent revenue from the fees for the miners compares with levels seen throughout the history of Bitcoin.
The value of the metric seems to have been pretty high in recent days | Source: Glassnode on Twitter
As displayed in the above graph, the Bitcoin min
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Author: Hououin Kyouma
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