- The Bitcoin network is seeing growth as interest in memecoins increases.
- Miner earnings begin to fall.
The crypto market has recently been flooded with memecoins like PEPE. Users are flocking to memecoins in droves, and interest in them has peaked again. An unlikely recipient of the hype was bitcoin.
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Bitcoin joins the party
According to data provided by Messari, memecoins have not gained traction in Ethereum’s scaling solutions, but have made their mark on the Bitcoin network.
These memecoins were able to spread across the network because of the novel BRC-20 standard, which is built on top of the Ordinals protocol.
The rising interest in memecoins impacted the daily transaction fees generated on the network. The data showed that BRC-20 ordinal transactions generated more than $1.5 million in daily fees.
Although general transactions still account for a large proportion of the fees generated on the network, a large proportion of these have now been generated by BRC-20 transactions.
Source: Messari
However, the number of standard bitcoin transactions has decreased.
May saw a significant drop in bitcoin activity, which coincided with a market-wide price correction.
This drop in activity was notable as the number of daily unique bitcoin addresses fell below 800,000 for the first time since July 2021.
Source: Santiment
Impact on miners
The declining transactions on the bitcoin network could impact the health of bitcoin miners and their profitability. At press time, miners’ daily earnings have dropped from $41.72 million to $29.44 million over the past few days.
Source: Blockhain.com
Additionally, there has recently been an uptick in the hash rate, which based on a 30-day moving average reached an all-time high of 350 tera hashes per second.
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A high hash rate increases the overall security and stability of the network by making it more resilient to potential attacks.
However, a high hash rate increases competition among miners. Therefore, due to the higher computing power required, it becomes more difficult for individual miners to earn rewards.
Source: glassnodein
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