The miners of Bitcoin and Ethereum have suffered a significant drop in revenue in May. The reason being, the values of both Bitcoin & Ethereum prices plunging to new lows in their respective markets.
May 2022, was one of the awful months for Bitcoin miners. BTC miners made $906.19 million in income in May, according to the reports.
Bitcoin miners made a loss of $253.81 million in May, compared to a value of roughly $1.16 billion in April 2022.
Since May 2021, when $1.45 billion in profit was reported, Bitcoin’s overall profitability has dropped by 37% in the last year.
The best single-day high in May 2022 was 11% lower than the greatest single-day high in April. According to YCharts, for April $46.01 million was the single-day high. May’s single-day high was at $40.53 million, which was 32% lower than the highest of $60.16 million set in January 2022.
Bitcoin Mining Drop Again
Bitcoin miners made $906.19 million in income in May, while Ethereum miners made $1.01 billion.
Ethereum’s income fell by 27% in April, similar to Bitcoin’s. Ethereum mining generated $1.39 billion in income in April 2022. But in May, Ethereum mining showed a year-over-year monthly drop. The income generated in May 2021 was over $2.4 billion, compared to 57% drop in May 2022.
Miners Gain More Profit From Ethereum Than Bitcoin
Although the May 2022 market was down, Bitcoin remains the most valuable cryptocurrency in terms of market capitalization. Miners, on the other hand, continued to gain more of Ethereum than from Bitcoin.
Before Ethereum miners’ earnings overtook Bitcoin’s in May, ETH surpassed BTC by $260 million in January, $190 million in February, $130 million in March, and more than $230 million in April.
Reason For Drop In Mining Revenue ?
To know the reason for the drop in mining revenue, it’s necessary to first understand how mining revenue is generated. Miners’ earnings are calculated by multiplying the price of a currency (BTC or ETH) with the number of coins earned in total over a specific time period.
The major cause of declining mining profits may be linked to falling cryptocurrency prices as a result of the May market crisis.
Because of trading in the region of $2,000 to $3,000 in the first 11 days of May, Ethereum mining earnings declined from April 2022. Around the previous 20 days, ETH has traded in the $1,700 to $2,000 region.
For the most of April 2022, Ethereum hovered around $3,000 to $4,000 per coin area. On May 1, ETH started at $2,730 and ended at $1,942 on May 31. In May, the opening and closing prices of Ethereum were both down by 28%.
Bitcoin, on the contrary, invested the initial nine days of May trading around the $30,000 to $40,000 region. BTC has moved towards $25,000 to $32,000 area during the previous 22 days. The flagship currency spent most of its days in April 2022 trading between $37,000 and $44,000.
On the whole, BTC began trading at $37,713 on May 1 and ended the month at $31,792. In May, the opening and closing price of Bitcoin (BTC) fell by 15%.