According to a recent study done by ETC Group, data shows that cryptocurrency miners enjoyed a very strong spring.
According to a press release tied to the report, “The quarterly research, released for the first time by ETC Group, analyses the performance of Bitcoin, Ethereum and Litecoin as well as providing commentary and analysis on market and technical developments. The annualized revenue run rates are calculated from the total transaction fees, also known as network revenue, paid to crypto miners in any period.”
The research showed that in the month of April, the calculated ARR for fees paid to Bitcoin miners reached $2.986 billion. A tweet from ETC Group stated that the number eclipsed the money made by Shopify ($2.922B) and Square ($2.982B).
The report also touched on fees generate from Ethereum, which has seen a year-over-year increase of more than 5,000%. Meanwhile, Bitcoin saw total transaction fees increase more than 750% year-over-year. The fees paid to miners, also referred to as network revenue, jumped from $48.5 million in Q2 2020 to $416.6 million in Q2 2021.
Bitcoin numbers on the up and up
On top of the increase in network revenue, the report shows Bitcoin numbers are on the rise across the board. The total transaction volume on the BTC blockchain rose 330% year-over-year to $527.1 billion, compared to $120 billion in Q2 2020. Bitcoin median transaction fees also jumped more than 1,000% while median daily active addresses neared one million. An increase of 11.5% over Q2 2020.
Speaking on behalf of ETC Group, CEO Brady Duke said that, “In the past few months we’ve seen leading cryptocurrencies generate more income through transaction fees than some of the world’s most valuable companies have done in recent years. We’re seeing increasing adoption of crypto assets, on institutional balance sheets in place of cash treasuries, and now even in government pension funds.”
ETC Group says that the increase in Bitcoin metrics coincides with the adoption of institutional investors and countries like El Salvador. “More broadly we’re seeing growth in crypto payments, and while some countries continue to adopt a cautious or hostile stance to bitcoin others like El Salvador have made historic strides to integrate bitcoin into their national currency models.”
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