Sales of Bitcoin and Ethereum miners fell sharply in June as China’s strict regulations affected mining activities.
June has been a difficult month for Bitcoin and Ethereum miners due to the strict requirements for mining activities in China and the decline in cryptocurrency prices. All this led to a sharp decline in the generated revenues of crypto-miners.
Bitcoin miners generated $ 839 million in revenue last month. This represents a 42% decrease from the $ 1.45 billion achieved in May. Nevertheless, sales in June 2021 are still higher than in the same month of the previous year.
The two main factors behind the drop in revenue are the Bitcoin price crash and a drop in transaction volume in June. Strict measures against mining activities in China and Iran have also contributed to this decline. The Bitcoin hashrate has fallen by almost 50% since its peak in May.
Revenue from Bitcoin mining generated through transaction fees fell from 9% in May to 5% in June. That’s because the number of daily transactions fell to around 200,000 in June, compared to over 300,000 in May.
Ethereum miners also made less revenue last month. In May, the miners generated $ 1.1 billion, while in June it was only $ 2.35 billion. The fall in the price of Ether to below $ 2000 and a decrease in transactions on the network contributed to this decrease in sales.
Of the $ 1.1 billion generated, only $ 166 million was accounted for by transaction and gas fees. This is the lowest transaction fee in six months. Bitcoin and Ether haven’t had it easy in recent weeks. At the close of this report, BTC is trading below $ 33,000, while ETH is trading at 2029 per coin.