In May 2023, the revenue generated from Bitcoin mining experienced a significant rise, reaching $916.6 million. This represents a month-over-month increase of 13.7%.
Based on The Block’s Data Dashboard, the mentioned revenue figure of $916.6 million in Bitcoin mining for May 2023 includes a notable portion of over $120 million derived from transaction fees. This substantial increase in transaction fees can be attributed to heightened on-chain activity during that period.
The emergence of bitcoin non-fungible tokens (NFTs) through platforms like Ordinals has contributed to a notable surge in transaction fee revenue for miners.
Bitcoin-based non-fungible tokens (NFTs) have quickly risen in popularity ranking second in terms of NFT sales per blockchain in the 30 days of May 2023.
During the 30-day period, the NFTs generated:
- Ethereum NFTs generated $397 million in gross sales
- Bitcoin NFTs generated $167 million
- Solana NFTs generated $57 million
Data provided by The Block Research indicates a substantial increase in transaction activity on the Bitcoin network during May 2023, with a total of 16.9 million transactions recorded for the month.
Transactions on the Bitcoin Network (Monthly)This development comes as the hashrate and mining difficulty continues to increase on the network. Bitcoin’s mining hashrate (measure of the computational power on a blockchain network) was at around 375 exahashes per second on May 31 2023. That was an increase from the 365.1 exahashes recorded during the last adjustment on May 18, data from Blockchain.com shows.
Consequently, the mining difficulty experienced a 3.4% increase, reaching an all-time high.
The difficulty level of Bitcoin adjusts approximately every two weeks and serves as a measure of the increased computing power required by miners to verify transactions on a block. A higher difficulty reading indicates a more competitive mining environment for Bitcoin resulting in reduced profitability for miners.
The mining difficulty reading came in at 51.23 trillion at block height 792,288 in the latest adjustment. That follows a 3.22% rise in the previous adjustment on May 18, according to this data from BTC.com.
BTC Mining DifficultyThe mining difficulty of Bitcoin tends to increase when there is a greater number of miners participating in the network, resulting in heightened competition.
Miners are rewarded with Bitcoin for successfully validating transactions on the network. As the difficulty level rises, the chances of a miner securing an entire block on the blockchain decreases.
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