Bitcoin Miners Face Revenue Challenges as Block Subsidy Dominates

Mars Finance reports that Bitcoin miners are experiencing a significant shift in revenue, with block subsidies now making up almost the entirety of their earnings. On September 13th, only $398,860 out of the miners' $25,350,000 daily income came from transaction fees - a mere 1.6% of the total. This marks a stark contrast to previous periods where transaction fees contributed over 40% of miners' revenue, highlighting their growing dependence on block subsidies.

Miners' income is facing a double squeeze with the Bitcoin halving earlier this year reducing the block reward to 3.125 BTC. This emphasizes the challenges currently facing the mining ecosystem.

The steep decline in transaction fee revenue is largely attributed to the cooling down of once-popular trends like Ordinals and Runes. These innovations had initially promised a resurgence in on-chain activity, driving up transaction fees and boosting miners' profitability. However, waning interest in these trends has led to a corresponding decrease in fees, forcing miners to grapple with a new economic reality.