Bitcoin and Ethereum miners saw a further drop in revenue as the bears from May continued throughout June and the prices of both cryptocurrencies fell.
June 2022 proved to be the worst month for Ethereum miners. Be. According to[In]Crypto Research, ETH miners were able to generate approximately $549.58 million in revenue in the sixth month of the year.
Ethereum miners’ revenue for June was $460.42 million down from May 2022’s value of approximately $1.01 billion.
Ethereum’s overall profitability was also down 51% from June 2021 compared to the previous year, with $1.14 billion recorded in revenue.
Bitcoin surpasses Ethereum mining revenue
Bitcoin surpassed Ethereum mining revenue for the first time since December 2020. In the last month of 2020, the revenue of bitcoin miners was around $692.32 million, while that of ethereum was in the region of $380.88 million.
While Ethereum miners managed $549.58 million in June revenue, bitcoin miners generated approximately $667.94 million.
Like Ethereum, Bitcoin’s revenue is down 26% since May. Bitcoin mining generated total revenue of $906.19 million in May 2022. Bitcoin mining also saw a year-on-year monthly decline in June. Revenue of about $839.09 million was generated in June 2021, while the figure for 2022 declined by 20%.
Miners move away from Ethereum in June 2022
Ethereum remains the second largest cryptocurrency by market cap, despite the total market capitalization of the crypto finance space dropping by over $1.3 trillion in the first half of the year.
Simultaneously, miners benefited more from bitcoin than from ethereum to close the second quarter of 2022.
Overall, the revenue of bitcoin miners is $118.36 million more than that of ethereum.
Aside from June, Ethereum miners accounted for the lion’s share of revenue in the first five months of the year.
In January, ETH surpassed BTC by $260 million. Due to geopolitical events resulting from Russia’s invasion of Ukraine, mining revenue declined but ETH still exceeded BTC by over $190 million. ETH miners shared $130 million more revenue than BTC miners in March. In April and May, ETH coin miners earned $230 million and $103 million more, respectively, than BTC miners.
What is the reason for the decline in mining revenue?
To understand the decline in mining revenue, we must consider how mining revenue is calculated.
Miners’ revenue is calculated by multiplying the total number of coins earned by contributing to the verification of transactions by the price of coins (in this case, BTC and ETH) within a given period.
With this in mind, we can conclude that the sharp drop in the price of digital assets can be attributed to the decline in mining revenue.
Throughout June, Ethereum traded between $896.11 and $1,965. When we compare this to June 2021, the price of Ethereum is between $1,707 and $2,891.
In June, bitcoin traded in a price range between $17,708 and $31,957. Miners earned more than revenue in June 2021, while BTC traded between $28,893 and $41,295.