Bitcoin network transfer value jumped 26% even as fees declined, exposing how little miners earn from the billions moving across Bitcoin.
Bitcoin's transfer value surged 26% to $5.5 billion last week, even as transaction fees paid to miners declined, according to Glassnode.
The blockchain analytics firm's Oct. 26 report showed that entity-adjusted transfer volume climbed from $4.4 billion a week earlier, while total transaction fees fell 8.8% to $185,200 from $203,200.
Meanwhile, daily active addresses declined 2.2% to 615,200, highlighting a growing divergence between the amount of money moving across Bitcoin and the network activity generating revenue for miners.
Bitcoin miners typically earn revenue from two sources: newly issued BTC awarded for producing blocks and transaction fees paid by users competing for limited blockspace.
When network activity increases, users may offer higher fees to secure faster transaction confirmations, boosting miners' earnings. However, fees depend on competition for blockspace rather than the dollar value transferred, meaning even large Bitcoin transactions can generate relatively little revenue.
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This competition has remained subdued despite rising transfer volumes. Earlier this month, CryptoSlate reported that Bitcoin miners' daily revenue climbed back above $40 million, with transaction fees accounting for less than 1% of their income.
Mining analysis platform Pool BTC illustrated the disparity using network activity from the 24 hours through Oct.
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