Bitcoin miners generated approximately $1.1 billion in revenue in January 2021, which is up 62% from December 2020, as per on-chain data from Coin Metrics analyzed by CoinDesk.
This surge in revenue came as the BTC price went up from $29,000 to just a few dollars away from $42,000 in early January before being at a level in the last two weeks.
Measured by per terahash per second (TH/s), miners’ revenue bounced from $0.20 to $0.27 for most of the month after peaking near $0.32 in early January, from the reports of Luxor Technologies.
Network fees brought over 10% of total revenue which was $116 million in January, a slight number up from the 9.8% of revenue recorded by fees last month. Though fee revenue hit its highest mark since January 2018, as per Coin Metrics presentation.
Fees measured in dollars were quite volatile in January, with average transaction costs between $5 to above $16 along the month.
Apparently, fees as a small percentage of total revenue continue a very strong upward trend since April, according to the network’s third-ever block subsidy halving in May. Increments in fee revenue are needed to upgrade the network’s security as the subsidy decreases every four years.
Despite calls by some investment professionals including Guggenheim’s CIO Scott Minerd that the BTC price is too high right now, miners eye a continued phase of strong revenue. Bitcoin miners continue buying more mining machines and have started to receive and deploy ASICs pre-ordered last year as they take actions on plans for the overall expansion.