Bitcoin, Ethereum Miners Make Highest Hourly Revenue in History
In barely a week apart, miners of top cryptocurrenices Bitcoin and Ethereum recorded their highest hourly revenue ever on both networks according to new data from GlassNode.
The analytics firm shows that Ethereum miners earned $3.5 million in a single hour on February 5company record the network’s highest hourly revenue to date while Bitcoin’s came on February 11 with over $4 million made in a single hour on its network for the first time.
Cryptocurrency miners run the systems that process transactions and secure respective networks. They charge a mining or network fee for this purpose. The recent upsurge in crypto adoption particularly for applications like decentralized finance (DeFi), payments, and other projects, made the networks to be busier.
Coupled with spikes in the prices of Bitcoin and Ethereum in the past week, there have been longer wait times on these networks leading to higher miner fees as users compete to get their transactions confirmed faster.
The top two cryptocurrencies with the largest market cap breaking the highest hourly revenue record indicates not just that the crypto miners processed an increased number of transactions but also that more users in the ecosystem are demonstrating their willingness to spend more to process their transactions.
GlassNode had earlier this week pointed out that despite the wavering pace of Bitcoin price as it edges towards $50,000, its Dormancy Flow (entity-adjusted) still shows that the bear/bull threshold has not been crossed yet meaning its price could continue its upward trend.
When it reached a new all time high of $44,127 this week, the firm maintains that on-chain metrics “continue to signal favorable conditions as the Bitcoin supply remains restricted.”
It has since touched $48,000 – also this week – thanks in part to Tesla’s founder, Elon Musk, and two major US financial institutions – MasterCard and BNY Mellon – which announced new cryptocurrency projects that will somewhat edge digital assets closer to mainstream use in ordinary purchases and as an investment.
Mastercard says it is preparing for the future of crypto and payments by supporting select cryptocurrencies directly on its network while America’s oldest bank BNY Mellon will offer crypto custody later this year to help clients deal in digital assets.
Wrapped Bitcoin (WBTC) saw a surge in its trading volume too. Its volume on Uniswap hit a new ATH with more than $46 million traded on the exchange within one hour on Monday February 8.
It should be noted that GlassNode data shows that the number of Bitcoin whales (individual or entities holding at least 1000 $BTC on a long-term basis) has seen an increase.
“Since the beginning of the year, more than 200 new whale entities have appeared in the network –– data supporting the case that institutions are arriving,” the firm states.
Meanwhile, in a related BItcoin mining development, China’s SOS Limited says this week that it has received 5000 pieces of mining rigs that will help its new venture generate about 175p of Bitcoin and 350g Ethereum hash power respectively. Though new to the trade, the company expects the projected output to be significant considering the current crypto price momentum as it awaits another delivery of rigs soon.