As I’m sure many of you have heard, an important event happened this week for Bitcoin – it’s 3rd ever halving! On May 11th at block #630,000, the reward for miners fell, as intended, from 12.5 BTC to 6.25 BTC per block. This brings the annual issuance rate down to ~1.8%. While the price dipped ~12% heading into the halving, it’s since seen a gradual recovery and is now relatively flat on the week. While price is clearly important, how has the network fared since the reduction in new supply? Let’s dive into the data and find out.
Among all of the stakeholders within Bitcoin, miners are clearly the most affected by halving events. At this stage in Bitcoin’s life, the revenue they earn from block rewards significantly dwarfs the revenue that they earn from transaction fees. As expected, the 50% decrease in the block reward resulted in a roughly equivalent decrease to their total revenue. However, while the % of miner revenue derived from transaction fees was expected to rise as a result of the halving, the recent uptick has sizable. In the 7 days leading up to the halving, the average % of miner revenue from fees was ~4.2%. As of today, we’