Bitcoin moves over $5 billion in value but miners collect just $185,000 in transaction fees
Glassnode’s October 26 snapshot shows higher estimated settlement value alongside lower fees and active addresses. Read the full story on CryptoSlateUnderstand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
Bitcoin's transfer value surged 26% to $5.5 billion last week, even as transaction fees paid to miners declined, according to Glassnode.
The blockchain analytics firm's Oct. 26 report showed that entity-adjusted transfer volume climbed from $4.4 billion a week earlier, while total transaction fees fell 8.8% to $185,200 from $203,200.
Meanwhile, daily active addresses declined 2.2% to 615,200, highlighting a growing divergence between the amount of money moving across Bitcoin and the network activity generating revenue for miners.
Bitcoin miners typically earn revenue from two sources: newly issued BTC awarded for producing blocks and transaction fees paid by users competing for limited blockspace.
When network activity increases, users may offer higher fees to secure faster transaction confirmations, boosting miners' earnings. However, fees depend on competition for blockspace rather than the dollar value transferred, meaning even large Bitcoin transactions can generate relatively little revenue.