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25 Jul 2022
Huge increase in bitcoin mining revenue
The struggling bitcoin miners finally see increases in revenues after Bitcoin reduces its mining difficulty by the most in one year.
The daily miner revenues are now back above $20 million, seeing a 15% growth over the past seven days. The bitcoin miners welcomed this revenue growth, as some of them were in danger of bankruptcy as the industry-wide revenue fell below $18 million – the lowest level since November 2020.Source: BytetreeThe miner revenue increase is partly caused by last week’s 5% difficulty reduction. This was Bitcoin’s largest downward difficulty adjustment in one year, as the hashrate has fallen 15% from its all-time high in June.Source: Blockchain.comWe already see that the difficulty adjustment has had its desired effects, as the block production rate is closing in on the target of 6 blocks per hour. Keeping the block production rate close to the target independent of the hashrate is the purpose of the difficulty adjustment, which happens every 2,600 blocks or approximately every second week.Other than that, not much is happing on-chain. The on-chain activity remains at muted levels, with the number of active addresses sitting at the lowest since September last year.