Bitcoin and Ethereum miners suffered a significant drop in revenue in May. This is because the values of both Bitcoin and Ethereum are crashing to new lows in their respective markets.
May 2022 was one of the most dreadful months for bitcoin miners. According to the reports, BTC miners generated $906.19 million in revenue in May.
Bitcoin miners made a loss of $253.81 million in May, compared to around $1.16 billion in April 2022.
Since May 2021, when a profit of $1.45 billion was reported, Bitcoin’s overall profitability has fallen by 37% over the last year.
The best daily high in May 2022 was 11% lower than the best daily high in April. April’s daily high was $46.01 million according to YCharts. The daily high in May was $40.53 million, down 32% from the January 2022 peak of $60.16 million.
Bitcoin mining falls again
Bitcoin miners generated $906.19 million in revenue in May, while Ethereum miners generated $1.01 billion.
Ethereum’s earnings fell 27% in April, similar to Bitcoin’s. Ethereum mining generated $1.39 billion in revenue in April 2022. But in May, Ethereum mining recorded a monthly year-on-year decline. Revenue generated in May 2021 was over $2.4 billion compared to a 57% decline in May 2022.
Miners benefit more from Ethereum than from Bitcoin
Although the market was down in May 2022, Bitcoin remains the most valuable cryptocurrency in terms of market cap. Miners, on the other hand, continued to win more from Ethereum than Bitcoin.
Before Ethereum miners’ earnings overtook Bitcoin’s in May, ETH outperformed 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 revenue?
In order to know the reason for the drop 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 total number of coins earned over a given period of time.
The main cause of falling mining profits could be related to falling cryptocurrency prices as a result of the market crisis in May.
Due to trading in the $2,000-$3,000 region for the first 11 days of May, Ethereum mining earnings have been declining since April 2022. For the past 20 days, ETH has been trading in the $1,700-$2,000 region.
For most of April 2022, Ethereum hovered around $3,000 to $4,000 per coin area. On May 1st, ETH started at $2,730 and ended on May 31st at $1,942. In May, Ethereum’s opening and closing prices each fell by 28%.
Bitcoin, on the other hand, invested in trading around the $30,000-$40,000 region for the first nine days of May. BTC has been moving towards $25,000 to $32,000 in the last 22 days. The flagship currency spent most of its days in April 2022 trading between $37,000 and $44,000.
Overall, BTC started trading at $37,713 on May 1st and ended the month at $31,792. In May, Bitcoin (BTC) opening and closing prices fell by 15%.
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