Bitcoin miners took a back seat in mining profitability in the month of January as Ethereum miners saw a 20% increase in revenue over bitcoin miners.
January proved to be a tough month for bitcoin miners. According to research by BeInCrypto, miners were able to generate approximately $1.2 billion in revenue during the first month of 2022. Although the figures appear impressive, total revenue for January was $220 million less than for December 2021, a massive 15% reduction in mining revenue.
Mining Revenue Still Growing From 2021
The reduction in mining profitability last month would have had little effect on miners in the long run. The overall profitability of bitcoin mining has grown by 8% in the past year since January 2021, recording $1.1 billion in revenue.
Bitcoin Active Addresses Crashed One Million in January
While bitcoin mining revenue declined in January, the volume of active addresses increased from a low of 700,000 at the beginning of the month, to eventually exceeding one million by the end of the month.
Bitcoin Miners’ Revenue Set in One Day High at $60.16 Million
Although bitcoin mining revenue was low in January, the one-day high on revenue for January 2022 was still 29% higher than the day’s high in January 2021. January 2022 saw a one-day high of $60.16 million in revenue, while January 2021 saw revenue of $46.31 million. ,
February mining revenue currently sits at $548.22 million at the time of writing, noting an all-time high of $50.02 million in mining revenue on February 12.
Ethereum surpasses bitcoin mining
According to research by BeInCrypto, bitcoin miners managed $1.2 billion in January revenue, while Ethereum miners managed $1.47 billion. Similar to bitcoin, mining revenue has declined 23% since December 2021. Ethereum mining saw total revenue of $1.91 billion in December 2021. Ethereum mining also saw a year-on-year monthly increase for January. Revenue of $1.31 billion was recorded in January 2021, an increase of 11% over 2022, as reported by BeInCrypto research.
miners prefer ethereum
Bitcoin remains the top digital asset by market capitalization. However, based on mining statistics, Ethereum is a clear favorite. Before the overall decline in mining revenue in 2022, Ethereum mining revenue in December 2021 was 32% higher than that of bitcoin, with Ethereum a clear favorite in January 2022, with 20% more revenue than bitcoin.
What is the reason for the decline in mining revenue?
The fall in market prices can be attributed as the key feature for the decline in mining revenue. According to research by BeInCrypto, bitcoin opened in December 2021 at $56,907. However, declining market conditions saw a price close to $46,306 near 2021.
The decline continued with bitcoin falling 21% in January 2022. Closed at $38,483 on January 2022. The total market capitalization of bitcoin has fallen by about $280 billion since the beginning of December 2021.
Similarly, Ethereum started at $4,623 in December 2021. The price of Ethereum looks like that of Bitcoin. It fell by more than 20% in December 2021. Ethereum will end the year at $3,682. The fall will become more violent in January 2022. Ethereum will drop another 29% to reach a price of $2,688 by the end of January 2022. Within two months, Ethereum has lost almost 40% of its market capitalization.
By the end of January 2022, the prices of bitcoin and ethereum saw a decline of 44% and 45% respectively, having fallen from their all-time highs in November 2021.
Miner revenue can be calculated by taking the price of the coin over a given period of time by taking the number of coins earned at its trading value. This explains why mining revenue decreased in value in January 2022.
February should see more impressive mining revenue figures as both cryptocurrencies have seen bounces from January bottoms. Bitcoin has already climbed 15% in February, reclaiming $44,000. While Ethereum is currently holding support above the $3,100 mark.
BeInCrypto’s Latest Bitcoin (BTC) Analysis, Click Here
Bitcoin (BTC) Vs Ethereum (ETH) Mining Revenue: Who Comes Out On Top? Appeared first on BeInCrypto.