- Transaction fees reached 8.05 BTC for a given block.
- Average transaction fees reached their second highest level of the year on December 16th.
Bitcoin [BTC] Miners laughed all the way to the bank as the total fees they collected for validating transactions exceeded the fixed block subsidy several times in the last 24 hours.
Transaction Fees > Block Rewards
AMCrypto analyzed Mempool data and discovered a specific block 821486 with a total transaction fee of 8.05 in BTCs. This was more than the predefined 6.25 units that miners receive upon successful block generation.
The block mined by Foundry USA, a top miner in the industry, generated a total revenue of 14.30 BTC, which is a whopping $588,695 according to current market prices.
This marked one of the highest fee generations for the network in 2023.
Source: Mempool
Upon further inspection, AMBCrypto discovered at least six other blocks during the same period where miners earned more fees than fixed rewards.
As is well known, miners need to be incentivized to ensure the security of the Bitcoin network and validate countless transactions that arrive every day.
The block subsidies should decrease exponentially and reach 0. Therefore, the discussion has shifted towards fee revenue.
Signs of heavy network traffic
Last year there were significant spikes in daily fees. According to Glassnode, miners earned an average of 0.00059 BTC on December 16, the second highest value of the year since the highs in early May.
Source: Glassnode
High average fees indicated transaction urgency and block congestion. AMBCrypto scanned Mempool and found 314,267 transactions in the queue as of this writing.
Memory consumption per block exceeded the 300MB limit by 1.36GB, causing the network to discard transactions below 17.6 sats/vB, or satoshi per byte.
Even fees of 301 sats/vB or $18.59 were assigned a low priority. On the other hand, users willing to spend 377 sats/vB or $22.28 have top priority.
Read Bitcoins [BTC] Price prediction 2023-24
Miners in profit
The increase in transaction fees counteracted the sharp increase in the hash rate, which in turn drove up the miners' hash price. According to data retrieved from Hashrate Index, the hash price rose to $127 per PetaHashes per day (PH/day), the highest level since May.
Source: Hashprice Index
Hash rate is an important indicator of miner profitability and is positively correlated with transaction fees.
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