Recent data from Bitbo, a leading bitcoin on-chain analysis platform, reveals a concerning trend for BTC miners. In August, miners suffered their worst month in nearly a year in terms of revenue generation. The total revenue generated from mining activities dropped to $827 million, a significant decrease of more than 10% from July’s $927.35 million. This represents a 57% decline from the sector’s peak performance in March 2024, when it earned over $1.9 billion.
On-chain fees also took a hit in August. Data from The Block shows that network participants received approximately $20.76 million in transaction fees, falling short by $4.14 million compared to July. When comparing to April’s performance, where the blockchain attracted more than $281 million in transaction fees against a mining income of $1.5 billion, the decline is even more pronounced.
Bitcoin Mined
The number of BTC mined in August also experienced a slight decline, dropping from about 14,725 in July to 13,843. This decrease made last month the worst revenue period for miners since September 2023 when they earned approximately $727 million. Despite the increased value of BTC, trading at $58,000 at the time of writing, mining activity and revenue generation are clearly struggling.
Despite the challenges faced by miners, there has been a notable increase in the number of Bitcoin whales. According to data from crypto analytics platform Santiment, the number of wallets holding at least 100 BTC grew by 283 over the past month. Currently, 16,120 wallets hold more than 100 BTC, the highest level in nearly a year and a half. This surge in whale activity is occurring amidst Bitcoin’s recent struggles with price fluctuations.
In the recent 24 hours, Bitcoin has experienced a 1.5% decline in value and lost nearly 10% over the last seven days. The cryptocurrency has been fluctuating between $57,383 and $64,066 as it attempts to maintain its $60,000 support level. Despite the increase in whale activity, the overall market sentiment towards Bitcoin remains uncertain, with ongoing price struggles contributing to the challenging environment for miners.
Overall, the data from Bitbo paints a grim picture for Bitcoin miners, with declining revenue, on-chain fees, and mining activity indicating a tough month of August. As Bitcoin continues to face price challenges and market uncertainties, miners will need to adapt and find new strategies to navigate these turbulent times in the cryptocurrency industry.