Bitcoin miners took a back seat in mining profitability during the month of January as ethereum miners saw a 20% increase in revenue over bitcoin miners.
January turned out to be a tough month for bitcoin miners. Miners were able to generate around $1.2 billion in revenue in the first month of 2022, according to research by BeInCrypto. While the numbers look impressive, total January revenue was down $220 million from December 2021, a staggering 15% decline in mining revenue.
Mining revenue still increasing from 2021
The decrease in mining profitability over the last month would have had little effect on long-term miners. The total profitability of bitcoin mining over the past year was up 8% since January 2021, which saw $1.1 billion in revenue recorded.
Active Bitcoin Addresses Cross One Million in January
As bitcoin mining revenue declined in January, the number of active addresses rose from a low of 700,000 at the start of the month to over a million at the end of the month.
Bitcoin miners revenue single day high set at $60.16 million
Although bitcoin mining revenue was down in January, the single day high on revenue for January 2022 was still 29% higher than the highest day in January 2021. The single day high for January 2022 saw $60.16 million in revenue, while January 2021 saw $46.31 million.
February mining revenue currently stands at $548.22 million at the time of writing, with February 12 having recorded a single day so far of $50.02 million in mining revenue.
Ethereum outpaces bitcoin mining
While bitcoin miners managed $1.2 billion in January revenue, ethereum miners managed to mine $1.47 billion, according to BeInCrypto research. In similar fashion to bitcoin, mining revenue declined by 23% from December 2021. December 2021 saw a total revenue in ethereum mining of $1.91 billion. Ethereum mining also saw a year-on-year monthly increase for January. January 2021 saw $1.31 billion in revenue recorded, with 2022 increasing by 11% as reported by BeInCrypto research.
Miners prefer Ethereum
Bitcoin remains the top digital asset by market capitalization. However, based on mining statistics, Ethereum is a clear favorite. Prior to the overall decline in mining revenue in 2022, December 2021 saw Ethereum mining revenue surpass bitcoin by 32%, with Ethereum being the clear favorite in January 2022, with 20% more revenue than bitcoin.
What caused the mining revenue decline?
Declining market prices can be credited as the key attribute for the drop in mining revenues. According to BeInCrypto research, bitcoin opened December 2021 at $56,907. However, declining market conditions saw the price close out 2021 at $46,306.
Bitcoin continued to decline as it fell another 21% in January 2022. January 2022 close at $38,483. Bitcoin’s total market capitalization had fallen by around $280 billion since the start of December 2021.
In similar fashion, ethereum began December 2021 at $4,623. The price of ethereum mirrored that of bitcoin. Falling over 20% in December 2021. Ethereum would end the year at $3,682. The decline would become more violent in January 2022. Ethereum would plunge a further 29% by the end of January 2022, reaching a price of $2,688. In a matter of two months, ethereum had lost nearly 40% of its market capitalization.
By the end of January 2022, bitcoin and ethereum had seen price declines of 44% and 45% respectively, from their all-time highs of November 2021.
Miner revenue can be calculated by taking the number of coins earned by the price of the coin at its trading price at a given period. This would explain why there was a decrease in mining revenue value in January 2022.
February should see more impressive mining revenue numbers as both cryptocurrencies see a rebound from January lows. Bitcoin has already climbed 15% in February, reclaiming $44,000. While Ethereum is currently holding support above the $3,100 mark.
