spot_imgspot_imgspot_img

BRC-20 Tokens Boosted Bitcoin Miners’ Earnings

  • It has been announced that Bitcoin miners earned $184 million in transaction fees from April to June.
  • Coin Metrics defined this increase in transaction fees as a significant change due to the emergence of BRC-20 tokens.
  • In March, BRC-20 tokens inspired by Ethereum’s ERC-20 token standard were introduced. These experimental coins have achieved a market value of $240 million since their inception.

Bitcoin miners’ revenues have increased with the impact of BRC-20 tokens; although the BRC-20 effect has decreased, miners continue to benefit from transaction fee revenue.

BRC-20 Tokens Increase Miners’ Revenue

Bitcoin (BTC)

It has been announced that Bitcoin miners earned $184 million in transaction fees from April to June. This represents a significant change in the previously stagnant transaction fee market. This figure may seem small compared to the total Bitcoin mining revenue of $2.4 billion during this period, but it represents a significant increase surpassing the total transaction fees of the previous five quarters.

Coin Metrics defined this increase in transaction fees as a significant change due to the emergence of BRC-20 tokens. Ordinals, launched earlier this year, is a protocol that enables the creation of NFT-like assets on the Bitcoin network by embedding data into individual satoshis.

Despite some resistance within the Bitcoin community, it managed to attract the attention of important figures like Ordinals. One of them is Michael Saylor, the founder of MicroStrategy, who highlighted the protocol’s potential to help maintain miners’ profitability over time.

In March, BRC-20 tokens inspired by Ethereum’s ERC-20 token standard were introduced. These experimental coins have achieved a market value of $240 million since their inception. To create BRC-20 tokens and request them from a BRC-20 project, users need to send a transaction and pay a fee to ensure that their transactions are processed on the Bitcoin network and included in the next block.

Miners Face Increasing Demand for BRC-20 Tokens

In May, with the increasing density of BRC-20 tokens, a sense of “frenzy” emerged, and people became more willing to pay higher transaction fees to make faster transactions. According to Nick Hansen, CEO of Luxor Technologies, the urgency created by BRC-20 tokens requires miners to confirm transactions faster than other Bitcoin miners to secure minted coins.

In May, transaction fees on the Bitcoin network reached such high levels that some claimed Bitcoin was under attack. In particular, the amount obtained from Bitcoin miners’ transaction fees exceeded the block reward for the first time since 2017.

Although the frenzy around BRC-20 tokens has subsided, Coin Metrics’ report shows that miners still earn a significant amount of transaction fee revenue. Hansen states that miners still earn 10 to 15 times more profit from transaction fee volumes compared to previous years, indicating the continuous demand for Bitcoin block space.

As the BRC-20 token ecosystem returns to normal, payments related to transaction fees may decrease slightly, but miners continue to benefit from a solid transaction fee revenue. This ongoing trend highlights the evolving dynamics of Bitcoin mining and the continuous demand for block space.

As the cryptocurrency world evolves, transaction fees and their impact on Bitcoin miners’ revenue continue to be an important consideration. The emergence of innovative protocols and the introduction of token standards can reshape the network’s economy and provide opportunities for miners to adapt and succeed in the changing digital economy.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news

spot_imgspot_imgspot_imgspot_img

Latest News

Bitcoin Approaches Its Next Halving: Can This Time Be Different?

As Bitcoin nears another halving, the crypto community watches closely, anticipating its potential impact on the market amidst evolving circumstances.

Bitcoin Funding Rate Dips Negative Amid $251M ETF Inflows: A Bearish Signal or Market Resilience?

This article delves into the recent negative turn in Bitcoin's funding rate against a backdrop of significant ETF inflows, exploring whether this signals a bearish trend or underscores the cryptocurrency's resilience.

Massive XRP Transfer Raises Concerns: XRP May Experience Selling Pressure!

The substantial transfers of XRP have garnered attention; will the transfers to Bitso and Bitstamp create selling pressure on XRP?

Uniswap Introduces “uni.eth” Subdomains with ENS Integration: Here are the Details!

Decentralized exchange platform Uniswap has introduced uni.eth subdomains with Ethereum Name Service integration.

Ripple Initiates Collaboration with Zoniqx to Empower Asset Tokenization

Ripple, a leading enterprise blockchain and crypto solutions provider, joins forces with Zoniqx: Here are the details!
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Ethereum Breaks $3K as Rally Continues: What’s Next for ETH?

This article dives into Ethereum's recent surge past $3,000, analyzing the technical indicators and market dynamics driving its ascent and future prospects.

Will Bitcoin Rise To $50,000? Current BTC Analysis

Bitcoin is trading at $48,400 and may rise to $50,777 if it closes above $48,200. However, caution is advised in the range of $50,777 - $52,000. Corrections are common in the crypto market, so careful consideration is necessary before spot investments.

Where is the Solana Rise Target? Current SOL Analysis!

Solana is trading near the $108 resistance on the 8-hour chart, with a potential target of $111.84 if it surpasses this level. However, caution is advised in the $111.84 - $117.20 resistance range on the 6-hour timeframe.

Medium Term Ethereum Technical Analysis! What Awaits Its Investors?

When examining the medium-term technical chart of Ethereum, strong buying pressure is observed, pushing the price up from the $2139 support to the $2350 region. However, for the price to sustain its upward movement, it needs to surpass the $2407 resistance.

Can Bitcoin Fall To $35,000 Levels? Current BTC Analysis

When examining Bitcoin's 5-day technical chart, the analysis from January 18 is ongoing, indicating a continued downward movement from the $48,189 level. Bitcoin needs to close 5-day candles above the $44,200 resistance to gain momentum for an upward trend. 
Lucien Renard
Lucien Renardhttps://en.coinotag.com/
Lucien Renard is a 24-year-old writer specializing in cryptocurrency analysis and price action. With a focus on technical analysis, Lucien provides valuable insights into market trends and potential opportunities for investors.
spot_imgspot_imgspot_imgspot_img

Bitcoin Approaches Its Next Halving: Can This Time Be Different?

As Bitcoin nears another halving, the crypto community watches closely, anticipating its potential impact on the market amidst evolving circumstances.

Bitcoin Funding Rate Dips Negative Amid $251M ETF Inflows: A Bearish Signal or Market Resilience?

This article delves into the recent negative turn in Bitcoin's funding rate against a backdrop of significant ETF inflows, exploring whether this signals a bearish trend or underscores the cryptocurrency's resilience.

Massive XRP Transfer Raises Concerns: XRP May Experience Selling Pressure!

The substantial transfers of XRP have garnered attention; will the transfers to Bitso and Bitstamp create selling pressure on XRP?