Hash Price Plummets After Bitcoin Halving 📉
Following Bitcoin’s fourth halving on April 20, the so-called hash price has hit fresh all-time lows. Despite a brief surge in revenue due to Runes etching hype and a relatively high hash rate, the hash price has dropped significantly.
Understanding Hash Price
- The term “hash price” refers to the expected value of hashing power per day.
- 1 PH/s or 1 TH/s of hashing power
- The metric helps miners estimate their earnings.
According to data from Hashrate Index, the hash price has fallen below $50 per PH/s per day for the first time, following Bitcoin’s price decline. The drop happened after miners’ subsidy reward halved from 6.25 BTC to 3.125 BTC post-halving.
Record Low Hash Price Post-Halving
- The hash price is now 10% lower than the previous record low.
- Around $55 PH/s per day at the bottom of the bear market in November 2022.
- When Bitcoin was trading at approximately $16,000.
Runes generated over $135 million in fees during their first week, significantly boosting average transaction fees on the Bitcoin network. However, transaction fee rewards have since decreased, leading to the fresh all-time low hash price after the initial hype subsided.
Impact on Hash Rate and Block Production 🧱
- The drop in hash price’s influence on hash rate remains unclear.
- The seven-day moving average hash rate stands at around 640 EH/s.
The slowing rate of block production post-difficulty adjustment on April 24 raises concerns about declining network hash rate. Analysts predict industry consolidation towards leading public miners like CleanSpark, Marathon, Riot Platforms, and Cipher Mining.
Runes Transaction Fee Impact Fades 📉
After block 840,000 generated $2.4 million in fees, far surpassing the block subsidy reward, bitcoin witnessed a record 104-block run of high transaction fee rewards. The spike was fueled by the Runes token as a new, efficient solution for token creation on Bitcoin, causing a fee windfall.
Runes on the Rise
- Runes generated over $135 million in fees during their first week.
- This increased the average transaction fees on the Bitcoin network.
- The hash price peaked at $182 PH/s per day on April 21, the highest in two years.
Despite the initial success, transaction fee rewards have declined, resulting in the hash price hitting its lowest point post-halving. The impact on hash rate, currently stable at around 640 EH/s, waits to be fully understood.
Network Stability and Miner Consolidation
- The slowing block production rate and block time above the 10-minute target interval suggest a potential decline in network hash rate.
- Analysts predict the industry will consolidate around four leading public miners.
Hot Take: Hash Price Plunge After Halving 🥵
The significant drop in hash price following Bitcoin’s fourth halving highlights the challenges miners face in the current market environment. The impact of declining transaction fee rewards on hash rate remains a key concern for industry players, with potential implications for network stability and miner operations. As the industry adapts to the post-halving landscape, consolidation among leading public miners could reshape the mining sector’s competitive dynamics. Stay tuned as developments unfold in the evolving crypto mining ecosystem.
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