Bitcoin miners say fee drought poses existential threat to network
13 days ago
- #Mining
- #Blockchain
- #Bitcoin
- Bitcoin transactions have plunged 80% since April 2024, according to Galaxy Digital.
- Miners are facing grim conditions with dwindling transaction fees and no immediate catalysts for improvement.
- Institutional investors like BlackRock are accumulating Bitcoin through ETFs, reducing on-chain activity and transaction fees.
- Nearly half of Bitcoin blocks are not reaching maximum capacity, and 15% process transactions with the lowest possible fees.
- Bitcoin ETFs and large treasury holdings are bypassing transaction fees, further depressing miner revenues.
- The mempool, once competitive, now remains idle for hours with minimal activity.
- Runes, Bitcoin's memecoins, have seen their daily volume drop from 60% to around 20%.
- Actively managed Bitcoin treasuries could potentially revive the fee market if they start trading holdings more frequently.
- Miners are struggling as Bitcoin's success as an institutional asset makes the blockchain less relevant for transactions.