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08 Aug 2022
Stagnating growth in bitcoin miner revenues
The Bitcoin miner revenues have seen solid growth lately, but it’s slowing down as the bitcoin price stabilizes and the mining difficulty increases.
Daily miner revenues increased from a bottom of only $17 million on July 17th to $21.8 million on July 29th. Since then, the growth has slowed, and daily miner revenues over the past seven days were only marginally higher at $21.9 million.The recent bitcoin price stabilization mainly caused the slowing growth in daily miner revenues, but the increasing mining difficulty also had a small impact.The Bitcoin network increased its mining difficulty by 1.7% last Thursday. This was the first upwards difficulty adjustment since June 8th, following three consecutive downwards adjustments.Source: BytetreeSource: Blockchain.comThe difficulty is increasing as the hashrate is coming back online. In July, the hashrate fell to its lowest level since March as the bitcoin price decrease squeezed out some of the miners with the highest bitcoin production cost.The low July hashrate was also, to a minor degree, caused by American miners powering down their machines in response to surging electricity demand following a heatwave.Other than that, we see no significant changes in on-chain activity, except for a larger drop in average transaction value. The number of daily active addresses has slightly increased from the bottom in June and is now at 900k.