The percentage of Bitcoin miner revenue generated from transaction fees has seen a significant decrease following a surge on the day of the most recent halving event. According to a report from CryptoQuant, transaction fees now make up 35% of total miner revenue, a notable drop from the 75% recorded on April 19.
During the fourth Bitcoin halving, which occurred last Friday, miner block rewards were cut in half to 3.125 bitcoins (BTC), causing daily issuance to drop from an average of 900 BTC to 450 BTC. On the day of the halving, daily miner revenue spiked to $100 million due to a sharp increase in transaction fees. Daily fees on the Bitcoin network reached 1,258 BTC ($80 million), accounting for 75% of the total revenue for that day.
One significant factor contributing to the high transaction fees was the Runes protocol, which saw heightened network activity following its launch on the Bitcoin halving block. The protocol enables the issuance and transfer of fungible tokens through the storage of data in OP RETURN codes, with code usage hitting a record high of 512,000 on the halving day.
However, within less than 24 hours after the halving, transaction fees dropped back to lower levels and have since remained there. Currently, fees make up 35% of total miner revenue, which now stands at around $50 million, marking a 35% decline from the pre-halving peak of approximately $78 million. Bitcoin transaction fees have fallen from $80 million on April 20 to $6 million, averaging around $16 million over the past week.
As transaction fees continue to decline and Bitcoin struggles to surpass $64,000, miners may face challenges in sustaining their operations with reduced block rewards. It is still early to observe any long-term effects of the halving on the network hashrate, as miners seem to be operating at a similar pace as before the halving. The Bitcoin network hashrate currently stands at 617 EH/s, with the hashprice at $0.07 per TH/s, the lowest since October.