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During the month of May, Bitcoin and Ethereum miners experienced a significant fall in revenue as the values of both cryptocurrencies reached new local lows.
- In 2022, Ethereum mining revenue surpassed Bitcoin for the fifth month in a row.
- Mining revenue for both digital assets fell year on year in May.
- Ethereum revenue reached $1 billion in May 2022, while Bitcoin revenue only reached $906 million.
May was one of the worst months of 2022 for Bitcoin miners. According to data conducted by Be[In]Crypto, BTC miners generated roughly $906.19 million in revenue during the fifth month of 2018.
May revenue for Bitcoin miners decreased by $253.81 million compared to April 2022's $1.16 billion.
Since May 2021, when $1.45 billion in revenue was generated, Bitcoin's overall profitability has decreased by 37 percent over the past year.
May 2022's daily maximum temperature was 11 percent below April's greatest daily maximum. YCharts data indicates that the highest daily volume for April was $46.01 million. May's single-day high was in the vicinity of $40.53 million, which was 32% less than January 2022's single-day high of $60.16 million.
Ethereum mining income has surpassed Bitcoin revenue for the seventh consecutive month.
In May, Bitcoin miners made $906.19 million, while Ethereum miners generated around $1 billion.
Similar to Bitcoin, the revenue of Ethereum declined by 27 percent from April. In April 2022, the mining of Ethereum generated a total revenue of $1.39 billion. In May, Ethereum mining also experienced a monthly drop year-over-year. May 2021 generated around $2.4 billion in income, whereas May 2022 suffered a 57 percent decline.
In May 2022, miners continue to make more from Ethereum.
Bitcoin is still the leading cryptocurrency by market capitalization despite the market meltdown of May 2022. Consequently, miners continue to profit more from Ethereum than Bitcoin.
In January, ETH beat BTC by $260 million, in February by $190 million, in March by $130 million, and in April by more than $220 million.
What precipitated the decline in mining revenue?
To comprehend the decline in mining revenue, we must examine the calculation of mining revenue. We determine the revenue of miners by multiplying the price of a coin (BTC or ETH) by the total number of coins mined over a specified time period.
May's market meltdown precipitated a precipitous decline in the value of cryptocurrencies, which is the primary driver of declining mining revenues.
Due to trading in the region of $2,000 to $3,000 over the first 11 days of May 2022, the mining earnings for Ethereum fell compared to April 2022. In the last 20 days, ETH has traded primarily between $1,700 and $2,000 per coin.
In April 2022, Ethereum traded between $3,000 and $4,000 per coin on the majority of trading days. Overall, ETH debuted on 1 May at $2,730 and finished on 31 May at $1,940. This resulted in a 28 percent fall between the opening and closing prices of Ethereum in May.
On the other hand, Bitcoin traded between $30,000 and $40,000 over the first nine days of May. In the last 22 days, BTC has traded more frequently between $25,000 and $32,000. Bitcoin spent the majority of April 2022 exchanging between $37,000 and $44,000. Overall, Bitcoin opened on May 1 at $37,713 and concluded on May 31 at $31,792. In May, the opening and closing prices for Bitcoin decreased by 15%.
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