Bitcoin (BTC) miners are witnessing a significant decline in revenue generated from transaction fees amid the asset’s drop from the highly-coveted $30,000 price point. This metric suggests that market participants are paying fewer transaction fees on the bitcoin network.
The percentage of miners’ revenue generated from transaction fees has plummeted to a 1-month low of 2.516%, per data from a Glassnode chart. The chart reveals a steep decline in this metric observed since the beginning of this month.
Notably, this metric does not reflect the total revenue generated from miners but the percentage of this revenue from transaction fees on the Bitcoin network. Bitcoin miners typically generate revenue from transaction fees and block rewards.
Block rewards make up most of the revenue miners generate, and they are accrued when a miner successfully adds a block to the network. Transaction fees are paid by users looking to get their transactions on the network prioritized. A decline in transaction fees indicates that the network is less congested and users pay less for transactions.
Despite this decline, miner revenue remains on the high side. The latest data from Glassnode indicates that miner revenue hit a 10-month high of $2.5 million as of April 11. Moreover, according to CryptoQuant, Miner Reserve, the amount of BTC held by miners’ wallets has increased to 1.834 million tokens, valued at $55.3 billion.
Bitcoin plummets to $29,000
These metrics prevail amid the asset’s decline to $29,000. BTC plummeted to the $29,000 mark earlier today for the first time since April 10. The bulls have persistently driven its price back above $30,000 following occasional drops engineered by the bears over the past week.
Following the drop to $29,000, BTC has staged a comeback in an attempt to reclaim $30,000 once again. Amid this battle, long-term holders have continued to retain their bags. Per data from Glassnode, the percentage of BTC supply last active in at least two years has surged to an all-time high of 53.417%.
Bitcoin is changing hands at $29,277, down 2.4% in the past 24 hours, with its technicals flashing buy signals. Moreover, the BTC Coinbase Premium Index reveals a high buying pressure on US institutional investors.