- Interest in Bitcoin NFTs has declined significantly in recent days.
- Miner revenues fell and hashrates fell.
Bitcoin [BTC] witnessed a massive price increase in recent days, crossing the $65,000 mark. However, the same growth was not observed on the Bitcoin network.
Taking a look at the NFT space
According to recent data from CryptoSlam, interest in the NFT sector has slowly waned. Notably, sales volume for Bitcoin NFTs has fallen 17% in the past 24 hours.
Popular Bitcoin NFT collections such as BONE and JIGO witnessed a massive drop in both bottom value and volume in recent days.
Source: Crypto Slam
This declining interest in NFTs could hurt the Bitcoin network’s growth potential and also impact overall activity.
The number of Daily Active Addresses also dropped significantly, showing that interest in the Bitcoin ecosystem was waning at the time of writing.
Source: Santiment
How are miners doing?
A decrease in activity on the Bitcoin network could also impact miners’ earnings. When activity on the Bitcoin network decreases, fewer transactions occur. This translates into lower transaction costs.
Because miners earn transaction fees for recording transactions in blocks, a decrease in activity translates into lower overall transaction fees collected by miners.
In recent days, miners’ revenues have fallen from $107 million to $30 million at the time of writing.
Source: Blockchain.com
The hashrate for BTC had also fallen in recent days, which could cause problems for miners.
While it seems beneficial that solving blocks becomes easier with a lower hashrate, the automatic adjustment of the network difficulty reduces the block reward each miner receives when there are fewer competitors.
This puts more pressure on transaction fees as a source of income for miners.
However, the reason the hashrate drops, which is a decrease in network activity, often means there are also fewer transactions and lower transaction fees.
Read Bitcoin’s [BTC] Price forecast 2024-25
This creates a big problem for miners, as they receive a smaller share of the fixed block rewards and have fewer opportunities to earn on transaction fees.
These factors can increase selling pressure on miners as they are pushed to sell their holdings to remain profitable.
Source: Blockchain.com