The revenue generated by Bitcoin and Ethereum miners drastically reduced in June, with the crackdown in China affecting mining activities.
Bitcoin and Ethereum miners endured a tough month in June, thanks to the crackdown on mining activities in China and the decline in cryptocurrency prices. This combined to cause a drastic decline in the revenue generated by the cryptocurrency miners.
Bitcoin miners generated $839 million in revenue last month. This represents a 42% decline from the $1.45 billion generated in May. Despite that, the revenues generated in June 2021 are still ahead of what they generated in the same month last year.
The decline in Bitcoin’s price and a drop in transaction volumes in June are the two major factors that led to a dip in revenue. Furthermore, the crackdown on mining activities in China and Iran has also contributed to the decline, with Bitcoin’s hashrate down by nearly 50% from its peak in May.
Bitcoin mining revenue generated from transaction fees dropped from 9% in May to 5% in June. This is due to the number of daily transactions dropping to around 200,000 in June, compared to over 300,000 in May.
Ethereum miners also experienced a decline in their revenues last month. The miners generated $1.1 billion in June, compared to the $2.35 billion generated in July. Ether’s price decline to below $2,000, and a reduction in transactions on the network contributed to the drop in revenue.
Of the $1.1 billion generated, only $166 million was from transaction and gas fees. This is the lowest transaction fee generated in six months. Bitcoin and Ether have been struggling in recent weeks. At the time of this report, BTC is trading below $33k while ETH is trading at $2,029 per coin.