With the block advantage cut in one-half, miners are relying on Bitcoin (BTC) transaction fees to sustain themselves to a much greater extent.

Miners lost 61% of their revenue

May x, miners earned 2188 BTC, May 12, this number fell to 852 BTC — a 61% driblet. The halving of the block reward forced some miners off the chain, reducing the network hashrate. This in plow led to the increment in block interval, significant that fewer cake candy in a unit of measurement of time, decreasing the number of block rewards bachelor to the miners.

Miner Revenue and Revenue From Fees. Source: Glassnode

Miner Revenue and Revenue From Fees. Source: Glassnode

Mini Death spiral phase

What has unfolded thus far could be called a mini death spiral scenario. The only saving grace for miners is that network congestion has led to a precipitous increase in the cost of transaction fees — from $0.62 at the end of April to $5.21 on May 15. Currently, as a result of this dynamic, transaction fees business relationship for 17% of the miners' acquirement. This is the highest proportion since Jan 2022.

Bitcoin Transaction Fees. Source:  blockchain.com

Bitcoin Transaction Fees. Source: blockchain.com

Miners revenue denominated in USD has declined from $19.25 million on May 9 to $7.82 million on May 12; a 62% decrease. The adjacent difficulty aligning will take place in iii days. Even so, live calculation is predicting an increment in difficulty because the hashrate grew substantially prior to the halving. However, by the time information technology comes effectually, at that place will likely be a minor subtract in the difficulty, which should help the remaining miners.

Miners Revenue. Source:  blockchain.com

Miners Revenue. Source: blockchain.com

It is possible that as Bitcoin matures and each new halving further cuts the cake reward until eventually, there are no more than new Bitcoins to mine, that miners will have to rely more than on the fees. However, higher fees will make the network less attractive for the users.

As Cointelegraph reported earlier, paradoxically, many of the mining industry insiders believe that the drop in hashrate is a bullish sign for Bitcoin as information technology will make the remaining miners more profitable.