Bitcoin Miner Revenues Surpassed Ethereum in June, But There is a Catch
- Bitcoin mining revenues edged past those of ETH by over $100 million in June.
Bitcoin mining revenues surpassed that of its closest digital asset competitor, Ethereum, in June. According to a report by Binance, bitcoin miners raked in about $656.47 million last month. On the other hand, Ethereum miners acquired an aggregate of $549.58 in the same month.
In short, Bitcoin mining revenues edged past those of ETH by over $100 million in June. With this, Ethereum miners lost the profitability battle to Bitcoin miners in June.
Closer Look at Bitcoin and Ethereum Mining Industry
The crypto mining industry has been lucrative thanks to the past bull markets. For instance, according to market data provided by TradingView, Bitcoin’s price is up 246,581 percent from its all-time low. On the other hand, Ethereum’s price is up approximately 83,220 percent from its all-time low. In short, for a long-term holder who had invested $1000 in each digital asset, their portfolio value could be 2,465 and 832 times higher.
At its peak, the Bitcoin ecosystem rewarded its miners with 6.25 units per block. This means that Btc miners enjoyed revenue of approximately $431,250.
However, since the onset of the crypto winter Bitcoin miners are taking home approximately $120,000 per block. Thereby representing a decline of almost 60 percent in less than a year.
The data further shows that the obtainable revenue now recorded by the BTC miners is at poorest since 2020. Although it is now slowly recovering, BTC’s present state remains a cause for concern considering its antecedent. Similarly, Ethereum miners are also enduring a robust fall in the proceeds obtainable in ETH mining. Just like BTC, the prevailing proceeds now recorded by ETH miners remain the worst since 2020.
The mining industry has attracted major institutional investors in the past few years. The decentralized financial ecosystem (DeFi) has led to attracting institutional money. However, the mining industry has recorded a tremendous spike in institutional investors. Moreover, investors are encouraged by moves made by El Salvador and the Central African Republic in adopting Bitcoin as legal tender.
Never Giving Up Spirit
Bitcoin miners play a critical role in securing the network from attacks. Moreover, they confirm transactions to avoid double-spending in a trustless manner.
However, in the past few years, Bitcoin and Ethereum miners have experienced notable headwinds from global regulators. For instance, the Bitcoin hashrate significantly dropped at the beginning of the year when Kazakhstan was under national protests.
In another instance, crypto miners recorded heavy migration to other countries when China imposed a ban on digital assets mining.
In all these instances, the crypto industry has come out stronger than before. Moreover, crypto mining rigs have since increased sharply in the North American region.
Additionally, the Ethereum ecosystem is preparing for a major shift from proof-of-work to proof-of-stake. Consequently revealing a spirit of never giving up in the crypto space.