Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
Home»BITCOIN NEWS»Why this makes life difficult for miners
BITCOIN NEWS

Why this makes life difficult for miners

By Crypto FlexsApril 27, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Why this makes life difficult for miners
Share
Facebook Twitter LinkedIn Pinterest Email

Data shows that the hype around new Bitcoin coins has declined sharply, which is not a good sign for miner profits.

The Bitcoin halving effect settles into miners’ profits as rune interest falls.

The much-anticipated Bitcoin halving took place a few days ago. Halving is a periodic event coded into the blockchain where the BTC block reward is exactly halved. It is held every four years, and the most recent event was the fourth.

Block rewards, which are heavily influenced by halving, are one of the two main ways miners generate revenue. Miners receive these rewards as compensation for solving blocks, which has historically been their main source of revenue.

Therefore, the halving could be problematic for the group’s finances as it would significantly reduce its profits. However, shortly after the recent halving, miner profits soared to a record $100 million.

The event cut block rewards in half, but at the same time caused a second source of revenue, transaction fees, to explode, helping total revenue increase rather than decrease as would normally be expected.

This surge in fees is due to the launch of the Loon Protocol, another major development for the network on the day of the halving. This protocol provides a way to issue fungible tokens on the Bitcoin blockchain.

Fungible tokens are indistinguishable from one another, just as individual BTC satoshis are usually completely identical. On the other hand, unique tokens are known as non-fungible tokens (NFTs).

Runes immediately became popular among users and network usage grew rapidly. Transaction fees are typically tied to network activity, so when this new protocol was discontinued, fees also increased.

This is natural, because during periods of high traffic, transmissions can be queued due to limited throughput on the network. Therefore, users have no choice but to pay high fees if they want to move faster.

According to data shared by on-chain analytics firm CryptoQuant, the high interest Runes received upon its launch led to an explosion in total transaction fees.

The value of the metric seems to have been quite high in recent days | Source: CryptoQuant on X

The chart also shows that the indicator has cooled since this massive peak. So while runes were quite popular at launch, interest in them has already waned.

Accordingly, Bitcoin mining profits, which were extremely high after the halving, also decreased.

Bitcoin Miner Profit

Looks like the miner revenue has taken a deep hit in the past few days | Source: CryptoQuant on X

Bitcoin miner revenue is now down to $50 million, half of its previous high of $100 million. So while Loon temporarily put miners in a comfortable position, that support line is now gone and these chain validators are starting to come under pressure.

BTC price

As of this writing, Bitcoin is trading at around $63,900, down more than 1% over the past seven days.

bitcoin price chart

The price of the asset appears to have plunged over the past couple of days | Source: BTCUSD on TradingView

Featured image from iStock.com, CryptoQuant.com, chart from TradingView.com

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

France can break the EU password market with ‘atomic weapons’.

September 15, 2025

Expect what XRP ETF is approved by the SEC

September 9, 2025

Cardano founder says Chainlink quotes ‘ridiculous price’ to them.

September 3, 2025
Add A Comment

Comments are closed.

Recent Posts

What is the next after the Fed’s 25bps is cut? Everything you need to know

September 18, 2025

The XRP market value surpasses Shopify, Verizon, and Citigroup. Whales sell 40m coins.

September 18, 2025

Green Hood Contracts Thanksgiving Summary -Ackee Blockchain

September 17, 2025

BetFury Is At SBC Summit Lisbon 2025: Affiliate Growth In Focus

September 17, 2025

FED Mining’s Cloud Mining Platform Is Helping Users Earn $8,800 Per Day, And XRP’s Growth Is Driving Market Enthusiasm.

September 17, 2025

Stablecoin Holdings Drop As Investors Pivot To SOL, XRP, And Altcoins

September 17, 2025

Flipster Partners With WLFI To Advance Global Stablecoin Adoption Through USD1 Integration

September 17, 2025

Zircuit Launches $495K Grants Program To Accelerate Web3 Super Apps

September 16, 2025

Kintsu Launches SHYPE On Hyperliquid

September 16, 2025

New Cryptocurrency Mutuum Finance (MUTM) Raises $15.8M As Phase 6 Reaches 40%

September 16, 2025

How XRP Enthusiasts Can Earn $15k/Day

September 16, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

What is the next after the Fed’s 25bps is cut? Everything you need to know

September 18, 2025

The XRP market value surpasses Shopify, Verizon, and Citigroup. Whales sell 40m coins.

September 18, 2025

Green Hood Contracts Thanksgiving Summary -Ackee Blockchain

September 17, 2025
Most Popular

According to the BTC price chart, Bitcoin could reach a low of $49,500 within a few days.

August 7, 2024

Ethereum Price Soars: Can the Uptrend Sustain?

October 15, 2024

Crypto Trader Says Altcoin Market Cap Will Soon Begin A ‘Historic’ Breakout. Here’s what can prevent this:

February 9, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.