A recent report shows that Bitcoin miners have witnessed a remarkable achievement, surpassing their previous record of 2022.
The report revealed that the miner made more than $100 million from transaction fees alone in Q2 2023.
The accumulated amount is greater than five times the total commissions accrued in the previous five consecutive quarters.
This achievement reflects the increasing demand for Bitcoin transactions and the growing value of the digital asset.
Bitcoin Miners Hit Milestone: Q2 2023 Transaction Fees Pass $100 Million Mark, Up More Than 270% From Q1
according to a published report Per Coin Metrics on July 5, Bitcoin miners generated a remarkable $184 million in transaction fees during Q2 2023.
This amount far exceeds the fees earned by miners for all of 2022.
This significant achievement marks the first time since the second quarter of 2021 that a quarter has passed the $100 million milestone.
The $184 million payment represents a staggering increase of more than 270% compared to the first quarter of 2023.
This figure exceeds the combined rates achieved during the previous five quarters, from the first quarter of 2022 to the first quarter of 2023, by more than five times.
The substantial increase in transaction fee revenue highlights the growing demand for Bitcoin and continued activity on the network.
However, transaction fees made up just 7.7% of the total $2.4 billion earned by miners in the previous quarter.
The report attributes the significant increase in transaction fees to the recent rise in Bitcoin prices and the implementation of the BRC-20 and Ordinals token standard.
Bitcoin miners get advantages from using BRC-20 and ordinals
In March 2023, the BRC-20 sheet was introduced, using Ordinals inscriptions to facilitate the creation and transfer of fungible tokens on the Bitcoin network.
This new class of token is inspired by Ethereum’s ERC-20 token standard. Since its inception, the market capitalization of BRC-20 tokens has grown to over $240 million.
Besides, Bitcoin ordinals launched in January 2023, introducing the Ordinals protocol to the Bitcoin network.
This protocol allows users to create non-fungible token (NFT)-like assets by enrolling data in a single satoshi.
A satoshi represents the smallest divisible unit of Bitcoin, equal to 1/100,000,000 of a BTC.
The combination of the BRC-20 token and the Ordinals protocol has introduced new possibilities and functionality to the Bitcoin ecosystem, expanding its capabilities beyond its traditional use as a store of value.
These developments boosted the market capitalization of BRC-20 tokens and provided avenues to create unique assets on the Bitcoin network, paralleling the NFT concept.
As mentioned in the report, bitcoin miners experienced favorable macroeconomic conditions in the last quarter.
Easing inflationary pressures resulted in lower electricity rates for US-based miners, which benefited them.
However, the report also noted a decrease in payment amounts related to transaction fees due to the waning enthusiasm around BRC-20 tokens.
However, miners still receive significant compensation from transaction fees.
