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 most horrible months for Bitcoin miners. BTC miners made $906.19 million in revenue in May, according to 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 profits were reported, overall Bitcoin profitability has fallen 37% over the past 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 drops again
Bitcoin miners made $906.19 million in revenue 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 profit more from Ethereum than from Bitcoin
Although the May 2022 market is down, Bitcoin is still the most valuable cryptocurrency by market capitalization. Miners, on the other hand, continued to earn more from 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 the drop in mining revenues?
To know the reason for the decline in mining revenue, one must first understand how mining revenue is generated. Miner earnings are calculated by multiplying the price of a currency (BTC or ETH) by the number of coins earned in total over a specific period of time.
The major cause of declining mining profits may be linked to falling cryptocurrency prices as a result of the May market crisis.
Due to transactions in the region of $2,000-$3,000 during the first 11 days of May, Ethereum mining revenue decreased compared to April 2022. Over the previous 20 days, ETH fell traded in the region of $1,700 to $2,000.
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 first nine days of May in the region of $30,000-40,000. BTC has moved towards a zone of $25,000 to $32,000 in the past 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%.
