The money generated by Bitcoin mining increased significantly in May 2023, hitting $916.6 million. This marks a 13.7% boost month over month.
According to The Block’s Data Dashboard, the $916.6 million in Bitcoin mining revenue for May 2023 includes a significant amount of more than $120 million received from transaction fees.
The significant rise in transaction fees can be linked to increased on-chain activity during that time period.
The development of bitcoin non-fungible tokens (NFTs) via platforms such as Ordinals has resulted in a significant increase in transaction fee revenue for miners.
Non-fungible tokens (NFTs) that depend on Bitcoin are rapidly gaining prominence, ranking second in terms of NFT sales per blockchain in the first 30 days of May 2023.
The NFTs yielded the following during the 30-day period:
- The gross sales of Ethereum NFTs were $397 million.
- Bitcoin NFTs brought in $167 million.
- Solana NFTs brought in $57 million.
The Block Research data shows a significant rise in transaction activity on the Bitcoin network in May 2023, with a total of 16.9 million transactions logged for the month.
This development comes as the network’s hash rate and mining challenges continue to rise. On May 31, 2023, Bitcoin’s mining hash rate reached roughly 375 exahashes per second.
This was a rise from the 365.1 exahashes reported at the previous adjustment on May 18, according to Blockchain.com.
As a result, the mining difficulty increased by 3.4%, reaching an all-time high.
The Bitcoin difficulty level is adjusted every two weeks and is a measure of the raised computational power needed by miners to verify transactions on a block.
A greater difficulty reading suggests a more competitive Bitcoin mining environment, which results in lower profitability for miners.
In the most recent adjustment, the mining difficulty reading was 51.23 trillion at block height 792,288. According to BTC.com data, this follows a 3.22% increase in the previous adjustment on May 18.
When there are more miners engaged with the network, the mining difficulty of Bitcoin tends to rise, resulting in increased competition.
Miners are compensated with Bitcoin for successfully validating network transactions. The chances of a miner obtaining a full block on the blockchain diminish as the difficulty level increases.
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