Bitcoin mining revenue september 2021

Bitcoin mining revenue september 2021

Bitcoin miners earned $1.3 billion in revenue from September.


Fee revenue is dropping simply because fewer people are using the Bitcoin blockchain right now. The possible reasons for this are various, including growth of Layer 2 payment protocols (e.g., Lightning Network) on Bitcoin, money flowing to other networks (e.g., Solana, Ethereum) to participate in ongoing decentralized finance and NFT crazes.

Regardless of the reason why, less than 1.5% of September revenue came from fees. This marks one of the lowest monthly fee revenue as a percentage of total revenue since January 2020, after August 2021.

In the short term, a significant decrease in fee revenue is no cause for alarm. In the long term, fee revenue must play a significant role in financing miner activity. The consistent downward trend in fee revenue since May is far from ideal, although many market factors make it trivial to explain away.

A resurgence in on-chain activity is needed for a revival in fee-based income. Until then, even if the price continues to appreciate and total revenue goes up, fee revenue will continue to decline.