Miners of bitcoin and ethereum suffered a huge drop in revenue in May. This is because the values of both Bitcoin and Ethereum are falling to new lows in their respective markets.
May 2022 was one of the dreadful months for bitcoin miners. Reportedly, BTC miners earned $906.19 million in May.
Bitcoin miners lost $253.81 million in May, compared to a value of about $1.16 billion in April 2022.
Since May 2021, when profits of $1.45 billion were reported, bitcoin’s overall profitability has declined by 37% over the past year.
The best single-day high in May 2022 was 11% lower than the biggest single-day high in April. According to YCharts, $46.01 million was a one-day high for April. May’s one-day high of $40.53 million was 32% lower than the January 2022 high of $60.16 million.
bitcoin mining drops again
Bitcoin miners made $906.19 million in income in May, while Ethereum miners made $1.01 billion.
Ethereum’s earnings fell 27% in April, similar to bitcoin. Ethereum mining generated $1.39 billion in revenue in April 2022. But in May, Ethereum mining showed a year-on-year monthly decline. The income generated in May 2021 was more than $2.4 billion, while in May 2022 it was 57% lower.
Miners get more profit from Ethereum than Bitcoin
Although the market was down in May 2022, bitcoin remains the most valuable cryptocurrency in terms of market capitalization. On the other hand, miners continued to acquire more Ethereum than Bitcoin.
ETH surpassed BTC by $260 million in January, $190 million in February, $130 million in March, and more than $230 million in April, before Ethereum miners overtook bitcoin in May.
The reason for the decline in mining revenue?
To know the reason for the decline in mining revenue, it is necessary to first understand how mining revenue is generated. Miners’ earnings are calculated by multiplying the price of a currency (BTC or ETH) by the total number of coins earned over a specific time period.
The major reason for the decline in mining profits may be linked to the fall in cryptocurrency prices as a result of the May market crisis.
Ethereum mining earnings have declined since April 2022, trading in the $2,000 to $3,000 region in the first 11 days of May. Around the last 20 days, ETH has traded in the $1,700 to $2,000 area.
For most of April 2022, Ethereum hovered around the $3,000 to $4,000 per coin area. On May 1, ETH started at $2,730 and ended at $1,942 on May 31. In May, both the opening and closing prices of Ethereum declined by 28%.
In contrast, bitcoin traded around $30,000 to $40,000 in the first nine days of May. BTC has risen in the $25,000 to $32,000 area during the past 22 days. The major currency spent most of its days trading between $37,000 and $44,000 in April 2022.
Overall, BTC started trading at $37,713 on May 1 and ended the month at $31,792. In May, the opening and closing prices of Bitcoin (BTC) fell by 15%.