Bitcoin network fees reached $42,9-million in October 2020. That was 12% of the miners’ total revenue in that month, the highest percentage since January 2018.
Total revenue reached $353-million, up 8% from September.
According to the research data analysed and gathered by Comprar Acciones, the increase in miners’ fees and revenue coincided with an upsurge in BTC price.
Based on Coinmarketcap data, bitcoin’s price went from $10 800 to over $13 800 in October 2020 alone. As of November 25, the top crypto is trading at around $19 300.
In October 2020 alone, BTC price soared by almost 30% month-over-month. Overall, it has had a strong 2020 following the mid-March slump.
On 12 March 2020, it shed nearly 50% in tandem with the rest of the market. However, it recovered soon thereafter, going from $6 427 in Q1 to $9 150 in Q2 and $10 794 in Q3, according to Statista.
In the first month of Q4, it shot up by 42%, compared to 1,44% for gold, 0,00% for the dollar and 5,31% for the SPX. On 5 November 2020, it grew by 108,4% year-to-date (YTD). Comparatively, gold had gained 25,15%, the US dollar grew 1,58% and the SPX was up by 6,58% in the same duration.
Moreover, according to a study by Grayscale, 55% of US investors said they were interested in bitcoin investments in 2020, up from 36% in 2019.
The October bitcoin miners’ fees also had to do with mempool congestion resulting from a drop in network hashrate (BNHR). According to YCharts, BNHR went from 141,83-million on 1 October to an ATH of 147,01-million on 18 October. From there, it took a nosedive to 107,64-million on October 31. Glassnode reported that Bitcoin mining revenue rose to a new yearly high of $21-million per day as of 19 November 2020.