Bitcoin and Ethereum Mining Revenue Crashes to New Lows in 2022

2022-06-01

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Bitcoin and Ethereum miners noticed a steep decline in income in the course of the month of Might as costs of each cryptocurrencies fell to new native lows.

Might proved to be one of many worst months for Bitcoin miners in 2022. Based on Be[In]Crypto analysis, BTC miners had been capable of generate roughly $906.19 million in income in the course of the fifth month of the yr.

Supply: Bitcoin Miner Income Chart by YCharts

Bitcoin miners’ income for Might was down $253.81 million from April 2022’s worth of round $1.16 billion.

The overall profitability of Bitcoin over the previous yr was down by 37% since Might 2021, which noticed $1.45 billion in income recorded.

The one-day excessive for Might 2022 was 11% under the perfect day excessive in April. The one-day excessive for April was $46.01 million, in accordance with knowledge from YCharts. The one-day excessive for Might was within the area of $40.53 million and this was 32% decrease than the perfect day excessive of $60.16 million in January 2022.

Ethereum outpaces Bitcoin mining income for the fifth consecutive month

Whereas Bitcoin miners managed $906.19 million in Might income, Ethereum miners generated round $1.01 billion.

Like Bitcoin, Ethereum’s income decreased by 27% from April. April 2022 noticed Ethereum mining carry forth whole income of $1.39 billion. Ethereum mining additionally noticed a year-over-year month-to-month decline in Might. Might 2021 noticed roughly $2.4 billion in income generated, whereas 2022’s determine dipped by 57%.

Supply: Ethereum Miner Income Chart by the Block Crypto

Miners nonetheless revenue extra from Ethereum in Might 2022

Regardless of the market crash of Might 2022, Bitcoin stays the most important cryptocurrency by market capitalization. With that mentioned, miners continued to profit extra from Ethereum than Bitcoin.

Earlier than Ethereum miners’ income surpassed Bitcoin in Might, ETH outpaced BTC by $260 million in January, $190 million in February, $130 million in March, and greater than $230 million in April.

What induced the crash in mining income?

To know the crash in mining income, we must always talk about how mining income is calculated. We calculate miners’ income by multiplying the value of a coin (BTC or ETH) by the entire variety of cash earned in a given interval.

Sinking cryptocurrency costs attributable to the market crash of Might will be credited as the first trigger for waning mining revenues.

Ethereum mining income decreased from April 2022 due to buying and selling within the vary of $2,000 to $3,000 within the first 11 days of Might. The final 20 days noticed ETH buying and selling extra within the vary of $1,700 to $2,000.

In April 2022, Ethereum traded within the vary of $3,000 to $4,000 per coin for almost all of days. General, ETH opened at $2,730 on Might 1, and closed Might 31, at $1,942. This equated to a 28% decline in Ethereum’s opening and shutting value in Might.

Supply: ETH/USD Chart by TradingView

Alternatively, Bitcoin spent the primary 9 days of Might buying and selling within the vary of $30,000 to $40,000. Within the final 22 days, BTC traded extra within the value vary of $25,000 to $32,000. In April 2022, Bitcoin spent the vast majority of its days buying and selling between $37,000 and $44,000. General, BTC opened at $37,713 on Might 1 and closed at $31,792 on Might 31. There was a 15% drop in BTCs opening and shutting value in Might.