Miners Back at Earning $1 mln Per Hour as Bitcoin Leads New Crypto Records
Several new records have reportedly been smashed in the crypto space in the wake of the recent exponential rise in the price of top cryptocurrency, Bitcoin.
Aside from Bitcoin price breaking its all time high records – in the past month, data from analytics firm Glassnode show that Bitcoin miners are currently earning about $1 million per hour both from the block reward and users transaction fees.
This is an increase of 185% since the May 2020 block reward halving, it says, and a match for July 2019 miner revenue figures when they last had it so high even though block rewards were twice as high than today.
Earlier, the firm had noted that miners have not been spending more Bitcoin than usual despite the recent rally as the Miner Outflow Multiple, which shows when miner outflow is high with respect to its historical average, has been far from previous tops and even below the 2019 local top.
The Market Cap of #Bitcoin just exceeded half a Trillion dollars for the first time in history!!!!
Now the institutional investors will pay attention like never before. Some of them won’t even start investing until it hits $1 trillion. pic.twitter.com/xXtraN8T0e
— Mr Gordon UK (@MrGordon_uk) December 27, 2020
Bitcoin growth buys crypto greater recognition
Even before it surpassed the $28,000 mark over the Christmas weekend, Bitcoin touched half a trillion market cap for the first time (though now at $490 bln). This makes it flip positions held by Samsung and a top financial services company, Visa, in assets on world’s largest companies by market cap when compared – though the basis of comparing Bitcoin market cap being the amount of currency in circulation (including the lost ones) with the payment systems market caps as the value of the companies is debatable.
It also now ranks higher than top global banks including JP Morgan Chase, ICBC and China Construction Bank with at least over $100 billion valuation.
Meanwhile, as Bitcoin continues to grow as the year ends with almost 70% market dominance and at a peak ATH of $28,000 – but tracing $27,000 at this writing – Glassnode shows on-chain signals remain bullish and suggests a significant supply side crisis for the top cryptocurrency.
Ethereum, Litecoin follow Bitcoin to see changes
Data from both CoinMarketCap and CoinGecko show that the top five coins by market cap, with the exception of USDT and XRP, have gained a 7-day increase in double digits since the Ripple lawsuit was announced last week. With the XRP market continuing to decline – now down by 56% in seven days as at this writing (at $10.3 bln) according to CoinGecko, Bitcoin, Ethereum and Litecoin have seen almost 20% growth each.
The world’s second-largest cryptocurrency by market cap, Ethereum, once again broke above $700 which hasn’t been seen since May 2018. With this feat, 90% of all Ethereum addresses (~47 million addresses) holding ETH are now reported to be in a state of profit, according to Glassnode. Aside from the number not having been this high since January 2018, the data shows there’s been a huge leap considering that only 3.2% of all Ethereum addresses were in profit as at March of this year.
For Litecoin, its 7-day growth has seen the silver to Bitcoin’s gold flip Bitcoin Cash’s position on the market cap list while it is next in line to dethrone XRP if it closes a less than $2 billion margin (as at this writing). At the same time, the interest of the Grayscale Litecoin Trust continues to rise with an increase in the quantity of the underlying Litecoin being purchased including in the past seven days.
Olusegun Ogundeji writes on tech-related issues including from the crypto/Blockchain space.
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