The profitability of bitcoin mining compared to ethereum has been declining in recent months. Ethereum miners have consistently outperformed Bitcoin for almost a year. It is so far when returns from bitcoin mining have once again edged out.
Bitcoin Miners in the Lead
The data shows that bitcoin miners are recovering compared to their ETH counterparts. This is evident in the closing hiatus of the past several months, where Ethereum miners barely managed to stay ahead. This will continue until the month of June, an uncertain month for all who are involved in cryptocurrencies, and it has, by extension, affected the profitability of ETH mining due to the drop in price.
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For the past month, the total amount generated by bitcoin miners was $656.47 million, while that of ethereum totaled $549.58 million for the same period. This shows that bitcoin miners outnumbered their Ethereum counterparts by more than $100 million in the month of June.
BTC miner revenue surpasses ETH | Source: The Block
This was a shocking development, as Ethereum’s revenue was actually ahead of Bitcoin by almost $100 million last month, and recorded a huge margin in the months before that. So the change has turned mining profitability expectations on their head.
Revenue fell to 2-year low
Although bitcoin surpassed Ethereum in terms of monthly mining revenue for June, the figures recorded for both digital assets speak to an even bigger problem. Due to the fall in prices across the market, profits from mining activities, although volume-wise, of the same coin, have declined significantly, dollar-wise.
At its peak, the reward for mining a single bitcoin block was 6.25 BTC. This translated to around $431,250 at a price of $69,000 per BTC. Currently, mining a single bitcoin block will bring miners a total of $120,000, which represents a drop of more than 60% in profitability.
BTC recovers above $19,000 | Source: BTCUSD on TradingView.com
As such, miner revenue is now down to its lowest in almost two years. Last time the figures were lower in December of 2020, just before the epic bull run of 2021.
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Ethereum has not been spared as it has faced the same fate. The data shows that the last time altcoins returned such little mining revenue was also in December of 2020. This suggests that digital assets can compete fiercely when it comes to mining revenue, with their rise and fall continuing to follow a similar pattern.
Featured image from Investopedia, chart from TradingView.com
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