Bitcoin beats Ethereum in mining revenues for the first time in a year

The profit for BTC mining amounted to $656,47 million

05.07.2022 - 16:30

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What’s new? According to a report from cryptocurrency exchange Binance, bitcoin surpassed Ethereum in June in terms of mining profitability for the first time in a year. Profits from BTC mining totaled $656,47 million, while ETH miners earned $548,58 million. Experts noted a narrowing of the gap between the two crypto assets' mining profits over the previous two months.

The Binance report

What does the report say? Analysts note that miners' earnings are directly proportional to the rates of the cryptocurrencies being mined. This means that their earnings have fallen significantly in the prevailing downturn in the digital asset market.

For comparison, mining one block of bitcoin brings a miner 6,25 BTC. In November 2021, when the asset hit an all-time high (ATH) of over $69 000, the reward per block was $431 250. Now, with the asset trading at $19 000, the figure is down 60% to about $120 000. Binance stressed:

“Due to the decline in price across the market, the returns from mining activities, although the same coin volume-wise, have declined significantly dollar-wise.”

The decline in income forced miners to either sell their equipment and mined coins, or look for alternative sources of income. According to Arcane Research, in May, many of them sold not only 100% of mined coins, but also assets from reserves.

As of July 5, 15:00 UTC, BTC is trading at $19 453, down 0,67% overnight. ETN is trading at $1089, up 0,2%, according to Binance.

Miners transferred 195 663 BTC to cryptocurrency exchanges in May, the largest monthly inflow since January 2022. Based on the average bitcoin price in May ($32 000), the total value of assets transferred to the platforms was about $6,3 billion.

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