Bitcoin miners recorded higher profits last month as the price of the leading cryptocurrency bounced back from its summer lows
Bitcoin miners posted impressive revenues in August as the price of the leading cryptocurrency performed better during that period. According to data captured by The Block, Bitcoin miners recorded a revenue of $1.41 billion in August, surpassing the amount they generated the previous month.
In July, Bitcoin miners generated $971.83 million, with the price of the leading cryptocurrency struggling at the time. Bitcoin slightly dropped below the $30,000 mark in July, losing more than 50% of its value from its all-time high above $64,000 which it achieved in April.
The $1.41 billion generated as mining revenue in August represents a 45% increase from July. However, it is still below the highest monthly mining revenue, which currently stands at $1.75 billion (in March 2021).
According to the research, most of the revenue comes from the incentives the miners earn when they successfully mine a block. After the last halving event in 2020, miners are paid 6.25 BTC for every block they successfully create.
The transaction fees generated by Bitcoin miners have been declining over the past few months. The report showed that the transaction fee shared declined from 3.1% of total mining revenue in July to 1.35% in August. The decline could be due to more people holding their Bitcoin in wallets instead of trading them on cryptocurrency exchanges and other platforms.
The cryptocurrency market experienced a bearish correction during the summer, with prices dropping from their May all-time highs in June and July. Bitcoin, Ether, Cardano, XRP, Dogecoin and the other leading cryptocurrencies all experienced huge drops in prices during that period.
However, August was a better month for the general market. The total cryptocurrency market cap surpassed the $2 trillion mark again while Bitcoin touched $50,000 on several occasions. Ether is trading above $3,500 per coin while ADA rose to become the third-largest cryptocurrency by market cap after reaching a new all-time high a week ago.