July turned out to be the worst month for Bitcoin miners so far in 2022. BTC miners were able to generate around $574.89 million in revenue during the seventh month of the year, according to research from BeInCrypto.
Bitcoin miners’ earnings for July recorded a 13% drop with respect to the June value of approximately 667.94 million dollars.
Apart of this, the total return on BTC mining revenue over the past year is also down 40% from July 2021when about $971.83 million in revenue was recorded.
Ethereum once again exceeds Bitcoin mining revenue
While Bitcoin miners managed to raise $574.89 million in July, ethereum miners generated approximately 596.33 million dollars.
Unlike Bitcoin, Ethereum revenue soared 8% since June. In June 2022, the ethereum mining generated total revenue of $549.58 million.
Like Bitcoin, the mining Ethereum also saw a year-over-year monthly drop in July. Around $1.11 billion in revenue was generated in July 2021, while the 2022 figure fell 46%.
Although BTC remained the most popular and largest digital asset by market cap in July, miners earned more by contributing Energy to the validation of transactions involving ETH than BTC.
What caused the drop in mining revenue?
To understand the drop in mining revenue, you need to have a clear understanding of how mining revenue is calculated. We calculate the income of miners multiplying the total amount of coins obtained as rewards in July by the price of the coins (BTC and ETH).
With this in perspective, we can conclude that the drop in the market prices of digital assets was the cause of the drop in mining revenue.
Throughout July, Ethereum was trading between $1,034 and $1,760. Compared to the same period in 2021, Ethereum traded in the price range between $1,722 and $2,551.
In July, Bitcoin traded in the price range between $18,967 and $24,573. In July 2021, miners made more money, while BTC was trading between $29,361 and $42,236.
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