Bitcoin Hashrate Hits Record High as Transaction Fees Plunge to Multi-Year Lows
Bitcoin’s (BTC) network strength continues to grow, with its hashrate reaching a new all-time high. The seven-day moving average has surged to 833 exahashes per second (EH/s), marking a 9% increase from 767 EH/s in recent days, according to data from Glassnode.
Despite Bitcoin’s price stabilizing around $100,000, transaction fees have dropped to their lowest levels in years. In the Bitcoin mempool, high-priority transactions currently cost just 5 sat/vB ($0.69), reducing miner earnings and raising concerns about long-term profitability.
According to Miner Mag, demand for mining hardware is slowing after a surge in pre-halving purchases. Many firms stockpiled equipment ahead of Bitcoin’s April 2024 halving—a scheduled event that cuts block rewards in half every four years. However, analysts now anticipate a deceleration in hashrate growth as the industry adjusts post-halving.
The hashrate—a measure of computational power securing the Bitcoin network—has increased by over 40% since the halving, largely driven by institutional investments in mining infrastructure. While this signals continued network expansion, it also heightens competition among miners, especially as block rewards diminish and transaction fees remain low.
Bitcoin’s economic model relies on transaction fees eventually replacing block rewards as the primary source of miner revenue. However, current fee structures challenge this transition, leaving miners more dependent on block subsidies.
Looking ahead, the next mining difficulty adjustment—expected in four days—could climb by over 6%, setting another record high and further intensifying pressure on miners.
