Bitcoin miners have earned more than $15 billion in revenue for the year 2021, recording a 206% year-on-year increase from 2020, as per recent findings from The Block Research. The report, 2022 Digital Asset Outlook Report, credited the growth to the soaring prices of the currency in the year.
The Block reported that mining revenue reached its peak in March when miners generated some $1.75 billion in BTC, with the whole first quarter recording more than $4.25 billion in revenue. In November Bitcoin reached its record high of $68,990.
On the other hand, Ethereum miners have generated more revenue than Bitcoin miners after generating approximately $16.5 billion in revenue. The growth represents a year-on-year rise of 678%. The latest NFT boom and rise in transaction fees are some of the factors that were attributed to the hike in revenue.
The Block has estimated the miner revenue on the assumption that miners sold their holdings immediately after mining. Hence, the results may not be completely accurate.
While the findings were largely positive, a recent report by Arcane Research revealed that Bitcoin mining profitability has been declining since November. A large part of the miners’ revenue depends on bitcoin prices, which have been declining since its ATH recorded in November.