According to a report by Bernstein, Bitcoin miners are currently experiencing a significant increase in revenue, reaching approximately three times the level observed before the recent halving event. This surge in revenue is primarily attributed to a spike in network transaction fees, indicating heightened developer interest in the Bitcoin ecosystem and presenting lucrative fee revenue opportunities for miners.
Since the halving event, miners have been earning an average of 19 BTC per block, in addition to the standard block rewards. This increase in earnings is fueled by a surge in network fees, resulting in a tripling of revenue. The halving event, which occurred recently, aims to slow down the rate of Bitcoin supply growth.
Analysts at Bernstein, Gautam Chhugani and Mahika Sapra, attribute this surge in network fees to speculative activity, particularly the minting of new tokens, including meme tokens, by retail traders. The launch of the Runes protocol over the weekend further intensified network fees on the Bitcoin blockchain.
Bernstein’s report highlights that current total miner revenue is approximately three times higher than pre-halving levels, reaching around 22 bitcoins compared to 7 bitcoins previously. Daily revenues have surpassed $100 million, with over $80 million attributed to transaction fees, a notably abnormal phenomenon.
While acknowledging the speculative nature of recent token launches, Bernstein emphasizes the untapped potential of the fungible token market on the Bitcoin network. Despite the speculative fervor potentially being short-lived, the report anticipates sustained growth in network transaction fees, projecting that they could account for 15% of miner revenues on a sustainable basis.
The report concludes that while speculative activity on blockchains may fluctuate over time, miners are likely to continue benefiting from the current surge in transaction fees, possibly lasting for 6-18 months.