Bitcoin miners see transaction revenue spike 400% in 2023

The revenue collected by Bitcoin (BTC) miners as transaction fees in 2023 reportedly averaged about $2 million per day, signifying a 400% jump year over year.

Jameson Lopp, co-founder of Bitcoin self-custody platform Casa, shared the data in a Dec. 23 post on X, signifying that Bitcoin miners were finally benefiting from the cryptocurrency’s soaring prices.

Revenue collected via transaction fees by bitcoin miners averaged nearly $2,000,000 per day in 2023. This is up 400% year over year. pic.twitter.com/zZjUwy1Gbh

— Jameson Lopp (@lopp) December 23, 2023

Lopp says Bitcoin miners raked in almost $2 million on average per day from transaction fees this year. That’s a 400% increase compared to last year.

Lopp also shared that BTC miners earned more than $10 billion in 2023. However, he clarified that the figures assumed the miners instantly exchanged their coins for fiat currency, something he suggested is not wholly true.

Bitcoin miners earned over $10 billion in 2023, a significant addition to the $57 billion total over the past 15 years. This number assumes they instantly sell for fiat, which is most certainly not the case – miners are HODLers. pic.twitter.com/nfH8KI6etH

— Jameson Lopp (@lopp) December 23, 2023

His revelation follows a recent report by Messari, which indicated that BTC miners attracted significant venture capital investment in November.

Per the report, there were 98 crypto-related deals last month, with about 90% of them, valued at $1.75 billion, going to Bitcoin miners.

This past month in crypto fundraising was led by BTC miners, with Northern Data and Phoenix Group raising ~$600M and ~$370M respectively.

Those deals aside, the rest of the crypto venture market did ~$750M in volume on 98 deals. pic.twitter.com/CvuwUsgu5c

— Messari (@MessariCrypto) November 29, 2023

The good news for the sector did not end there. As previously reported by crypto.news, Bitcoin miners earned more than $44 million in block rewards even as mining difficulty increased by 3.55% to set an all-time high.

The jump in mining difficulty was a result of Bitcoin experiencing a spike in its hash rate, with reports suggesting the network had gone through its fourth-highest hash rate adjustment this year, reflecting a 343% surge in this cycle.

Fourth highest adjustment this year.
But as we approach the halving in April, the #Bitcoin hash rate has grown 343% this cycle. https://t.co/ulGISA7Xtv pic.twitter.com/ftFrgl5yvC

— James Van Straten (@jimmyvs24) December 23, 2023

Analysts emphasize the crucial role of these escalating revenues in helping to offset the selling pressure on Bitcoin. 

This reduction in selling pressure may help strike a balance between supply and demand in the market, potentially driving Bitcoin’s price upwards — especially when coupled with the anticipated approval of spot Bitcoin ETFs.

The developments have led market watchers to make numerous predictions regarding Bitcoin’s price in 2024, with some claiming it could go as high as $160,000.