A recent report from The Block revealed that Bitcoinminers’ revenues fell sharply in June, dropping by a whopping 14.5%. Total revenue plummeted to $783.3 million.
Meanwhile, revenue generated from Ethereumstaking has also seen a significant decline, falling 24% in June to approximately $119.5 million.
Additionally, the Ethereum network saw a staggering 69,081 ETH tokens burnt in June, worth the equivalent of $126 million.
Burns have decreased by almost 50% compared to May. Data shows that Ethereum has been on a deflationary trend since January 2023. Since the implementation of EIP-1559 in early August 2021, Ethereum has seen about 3.42 million ETH tokens burned, with a total value of about $9.89 billion.
The drop in Bitcoin miner revenue can be attributed to a variety of factors affecting the cryptocurrency market. One of the key factors is China’s ongoing crackdown on cryptocurrency mining operations, which has resulted in a significant reduction in mining activity. The decline in mining activity directly affects the income of Bitcoin miners.
Likewise, the drop in Ethereum staking revenue is largely attributable to the volatility in the cryptocurrency market. Increased volatility in the cryptocurrency industry has led to a drop in investor confidence and subsequently reduced staking activity. Additionally, the drop in staking revenue may also have been impacted by the overall drop in ETH prices in June.
The massive burn of ETH tokens in June demonstrates the ongoing deflationary nature of the Ethereum network. This deflationary trend is a result of the implementation of EIP-1559, a protocol upgrade that introduced mechanisms to burn a portion of transaction fees.
The purpose of this upgrade is to standardize transaction fees and improve the overall efficiency of the Ethereum network. Since implementation, the total value of tokens burnt on Ethereum has grown steadily, underscoring the protocol’s success in reducing the overall supply of ETH.
Data provided by The Block shows a general decline in Bitcoin miner revenue and Ethereum staking revenue in June.