Satoshi

Foundry

Bitcoin

<ul> 
 <li><em>Transaction fees reached 8.05 in BTCs for a particular block.</em></li> 
 <li><i>Average transaction fees hit the second-highest level of the year on the 16th of December.</i></li> 
</ul> 
<p><a href="https://ambcrypto.com/category/bitcoin-news/" target="_blank" rel="noopener" data-wpel-link="internal">Bitcoin [BTC]</a> miners laughed all the way to the bank as the total fees they collected for validating transactions exceeded the fixed block subsidy on multiple occasions in the last 24 hours.</p> 
<h4>Transaction fees &gt; block rewards</h4> 
<p>AMCrypto analyzed Mempool data and spotted a particular block <a href="https://mempool.space/block/00000000000000000000441501ac5677ec63612ba7109f75b081748a59845c5c" target="_blank" rel="noopener nofollow external noreferrer" data-wpel-link="external">821486</a> with total transaction fees of 8.05 in BTCs. This was more than the predefined 6.25 units that miners receive upon successful generation of a block.</p> 
<p>The block, mined by Foundry USA, a top miner in the industry, generated total revenue of 14.30 BTC, amounting to a whopping $588,695 as per <a href="https://coinmarketcap.com/" target="_blank" rel="noopener nofollow external noreferrer" data-wpel-link="external">prevailing</a> market prices.</p> 
<p>This marked one of the highest fee generations for the network in 2023.</p> 
<div id="attachment_359208" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Block.jpg" data-wpel-link="internal"><img aria-describedby="caption-attachment-359208" decoding="async" class="size-full wp-image-359208" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Block.jpg" alt="" width="1133" height="368" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Block.jpg 1133w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Block-300x97.jpg 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Block-1024x333.jpg 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Block-768x249.jpg 768w" sizes="(max-width: 1133px) 100vw, 1133px"></a>
 <p id="caption-attachment-359208" class="wp-caption-text">Source: Mempool</p>
</div> 
<p>Upon further scrutiny, AMBCrypto discovered at least six more blocks in the same period where miners earned more in fees than fixed rewards.</p> 
<p>As is well-known, miners need to be incentivized to safeguard the Bitcoin network’s security and validate tons of transactions that land each day.</p> 
<p>The block subsidies are designed to exponentially decrease and reach 0. Thus, the discussion has started to shift towards fee revenue.</p> 
<h4>Sign of heavy network traffic</h4> 
<p>The past year has seen appreciable spikes in daily fees. As per Glassnode, miners earned 0.00059 BTC on average on the 16th of December, the second-highest of the year since the peaks scaled in early May.</p> 
<div id="attachment_359212" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_bitcoin-median-transaction-fees-btc.png" data-wpel-link="internal"><img aria-describedby="caption-attachment-359212" decoding="async" class="size-full wp-image-359212" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_bitcoin-median-transaction-fees-btc.png" alt="" width="1800" height="1013" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_bitcoin-median-transaction-fees-btc.png 1800w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_bitcoin-median-transaction-fees-btc-300x169.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_bitcoin-median-transaction-fees-btc-1024x576.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_bitcoin-median-transaction-fees-btc-768x432.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_bitcoin-median-transaction-fees-btc-1536x864.png 1536w" sizes="(max-width: 1800px) 100vw, 1800px"></a>
 <p id="caption-attachment-359212" class="wp-caption-text">Source: Glassnode</p>
</div> 
<p>High median fees indicated transaction urgency and block congestion. AMBCrypto scanned <a href="https://mempool.space/" target="_blank" rel="noopener nofollow external noreferrer" data-wpel-link="external">Mempool</a> and found 314,267 transactions waiting in the queue as of this writing.</p> 
<p>The memory consumption per block exceeded the 300 MB limit by 1.36 GB, leading the network to discard transactions below 17.6 sats/vB, or Satoshi per byte.</p> 
<p>Even fees of 301 sats/vB, or $18.59, were assigned a low priority. On the other hand, users willing to shell out 377 sats/vB, or $22.28, are the highest priority.</p>  
<p style="text-align: center;">Read&nbsp;<a href="https://ambcrypto.com/predictions/bitcoin-price-prediction" target="_blank" rel="noopener" data-wpel-link="internal">Bitcoin’s [BTC] Price Prediction</a>&nbsp;2023-24</p>  
<h4>Miners in profits</h4> 
<p style="text-align: left;">The jump in transaction fees countered the sharp rise in hash rate, in turn, boosting miners’ hash price. As per data fetched from Hashrate Index, the hash price surged to $127 per PetaHashes per day (PH/Day), the highest since May.</p> 
<div id="attachment_359238" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Hash-price.jpg" data-wpel-link="internal"><img aria-describedby="caption-attachment-359238" decoding="async" class="size-full wp-image-359238" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Hash-price.jpg" alt="" width="974" height="581" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Hash-price.jpg 974w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Hash-price-300x179.jpg 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Hash-price-768x458.jpg 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Hash-price-400x240.jpg 400w" sizes="(max-width: 974px) 100vw, 974px"></a>
 <p id="caption-attachment-359238" class="wp-caption-text">Source: Hashprice Index</p>
</div> 
<p>An important barometer of miners’ profitability, hash rate is positively correlated with transaction fees.</p>

As Bitcoin network gets busy, miners reap rewards

AMBCrypto

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