Bitcoin Miner Revenue Ready to Blast Through $15 Billion Milestone
- Bitcoin fees is all set to break through the $1 billion milestone
- Since early 2018, Bitcoin fees accounting less and less of miner revenue
- In comparison to BTC’s 74%, Ethereum’s fees grew as much as 400%
Bitcoin fundamentals are showing great strength as hash rate hits new highs and addresses holding more than $100 worth of BTC skyrockets since 2018.
Another positive facet of the network is seen in the form of rising fees. As per the data provided by Coin Metrics, Bitcoin is close to surpassing $1 billion of cumulative, all-transaction fees. As of Oct. 13, a total of $996,458,718 worth of fees has been paid on the Bitcoin network.
Yet another milestone that BTC is close to achieving is all-time miner revenue that will soon cross $15 billion. Miner revenue involves both block rewards that are new issued tokens and transaction fees that are paid to miners.
However, Coin Metrics found that since early 2018, Bitcoin fees have been accounting less and less of miner revenue. While on Jan. 31st, BTC fees accounted for about 12% of the total miner revenue, as of Oct. 13, 2019, this cumulative fees accounted for only 6.6% of total miner revenue.
This shows that since February 2018, BTC cumulative fees have not been growing as fast as block rewards. If we take a look at BTC median fees, it shot up to about $34 in late 2017. In comparison, the ETH fee peaked at only about $3.
However, since then, BTC median fees have fallen and remained at less than $4. This drastic drop in median fees is one of the reasons behind this decline in cumulative fees’ share of total miner revenue.
Ethereum fee, on the other hand, accounts for 3.6% of ETH’s miner revenue, as of Oct. 13. But, compared to the leading cryptocurrency, the ratio has
“stayed relatively flat since the start of 2018.”
This is due to the fact that Ethereum’s fees have grown much faster than the of Bitcoin, over the period. While Bitcoin’s fees have grown 74% since Jan. 1 2018, Ethereum’s grew as much as 400%.
As of Oct. 13, the thermocap ratio — another term for cumulative miner revenue — of Bitcoin is 10.3 in comparison to 3.2 of Ethereum while the S&P price to sales ratio is 2.18.