On April 20, Bitcoin miners made history by earning over $100 million in a single day. This milestone coincided with Bitcoin’s halving event, marking a significant moment for the cryptocurrency.
Bitcoin miners raked in a total of $107.7 million in rewards and fees on the 840,000th Bitcoin block. This surge in earnings was fueled by high transaction fees, with some users paying hefty amounts to ensure their transactions were processed quickly.
High Fees Drive Frenzy
Investors vying for a spot in Bitcoin’s history splurged on fees, spending 37.7 BTC (equivalent to $2.4 million) solely on transaction fees. This frenzy of activity was driven by the desire to secure a place on the limited space available in the block.
Much of the increased activity stemmed from the launch of Casey Rodarmor’s Runes Protocol, coinciding with the halving event. The protocol attracted attention as users scrambled to etch their satoshis onto the halving block.
The surge in mining revenue is closely tied to Bitcoin’s market price. Previous peaks in revenue occurred when Bitcoin’s price reached new highs. Miners receive rewards in BTC for confirming transactions, making their earnings subject to market fluctuations.
Halving Event Impact Bitcoin Mining Revenue
The April 20 halving event reduced mining rewards by half, further limiting the supply of new bitcoins. This reduction, to 3.125 BTC per block, will continue until the next halving event occurs.
Following the halving event, average transaction fees on the Bitcoin network experienced a sharp decline. Just a day after reaching record highs, average fees dropped significantly.
As of April 21, average transaction fees range from $8 to $10 for medium-priority transactions, according to mempool.space. This decline reflects the reduced hype surrounding the halving event and its immediate aftermath.
