Bitcoin network has seen an increase in terms of the hash rate securing its robust network. Owing to the recovery, its mining revenue has jumped by 57%, reaching levels last seen in mid-2020. This comes after this year’s sweeping clampdown in China that has greatly swelled profits for miners outside of the world’s second-largest economy.
The figures for Bitcoin mining revenues saw a sharp rise in the last few months as the network’s mining rate reached a massive 112.5 EH/s this month, compared to the low of 90 EH/s in July. As a matter of fact, the mining revenue of BTC is up 10%, or $4.3 million, from the previous week alone. To top that, the transaction fees generated are up 22%, or $118,000 per day.
According to the prominent blockchain intelligence platform Glassnode,
“Bitcoin miner revenue per hash has climbed by 57%, returning to mid-2020 levels as the Great Migration continues. The typical 900 $BTC mined per day are distributed between ~62.5% of the peak hash-power seen in May.”
Uptick in Bitcoin hash rate and difficulty
The great China migration had massive effects on the Bitcoin network’s health. The hash rate fell by about 50%, depicting how much the network relied on Chinese mining. However, on the 16th of August, the figures for hash rate rose to 136.2 exa hash/sec. The mining difficulty was also adjusted to 15.56 TH for the first time since the second week of June this year.
Popular analyst Will Clemente noted,
“Miner revenue (in BTC terms) per hash soared after the great China mining migration. Less competition = higher profitability for the miners still operating. As hash slowly begins to come back online, the impulse in BTC/hash is slowly fizzling.”
Clemente noted yet another interesting trend that despite Bitcoin revisiting $48k, miners weren’t eager to cash out their accumulated Bitcoin. In fact, he went on to add that it is because of the high revenue and hash that the miners have been accumulating putting into perspective that they believe the crypto-asset will soar higher.