Bitcoin miners took a back seat in terms of mining profitability during the month of January, with Ethereum miners increasing their revenue by 20% compared to BTC.
January turned out to be a tough month for Bitcoin miners. According to BeInCrypto’s research, miners were able to generate around $1.2 billion in revenue in the first month of 2022. While these numbers look impressive, January’s total revenue turns out to be $220 million lower than that of December 2021.
However, mining revenues remain up year on year
The decline in crypto mining revenue over the past month, however, should have minimal impact on long-time crypto miners. Indeed, total Bitcoin mining profitability over the past year has increased by 8% since January 2021, with $1.1 billion in revenue.
Active Bitcoin Addresses Cross One Million Mark in January
As Bitcoin mining revenue declined during January, the number of active addresses rose from a low of 700,000 at the start of the month to over a million at the end of January.
Bitcoin miner revenue hits $60.16 million in a single day
Although Bitcoin miner revenue declined in January 2022, the month high in day-to-day revenue was still 29% higher than in January 2021. In January 2022, revenue peaked at 60.16 million dollars on the day, compared to $46.31 million in January 2021.
Bitcoin mining revenue for the month of February currently stands at $548.22 million at the time of writing, with February 12 seeing a daily peak of $50.02 million in mining revenue.
Ethereum mining revenue exceeds that of Bitcoin
According to research by BeInCrypto, while Bitcoin miners recorded $1.2 billion in revenue in January, Ethereum miners managed to generate $1.47 billion.
Similar to Bitcoin, Ethereum mining revenue decreased by 23% compared to December 2021. Indeed, December 2021 saw total Ethereum mining revenue of $1.91 billion. ETH mining also showed a month-over-year rise for January: January 2021 saw revenue of $1.31 billion, while January 2022 was up 11%, as reported. BeInCrypto search.
Crypto Miners Prefer Ethereum
Bitcoin remains the top digital asset by market capitalization. However, based on crypto mining statistics, Ethereum is a strong favorite. Thus, in December 2021, before the general drop in mining revenues in 2022, Ethereum mining revenues exceeded those of Bitcoin by 32%. Likewise, Ethereum remains a favorite in January 2022, with 20% more revenue than mining BTC.
What is this drop in mining revenues due to?
Falling market prices can be seen as the key factor behind falling crypto mining revenue. According to BeInCrypto research, Bitcoin price opened December 2021 at $56,907. However, declining market conditions resulted in a close of 2021 at $46,306.
In January 2022, Bitcoin continued its slide, losing another 21% to close the month at $38,483. The total market capitalization of BTC, for its part, has fallen by around $280 billion since the beginning of December 2021.
Similarly, Ethereum’s price started December 2021 at $4,623 and then mirrored the movement of Bitcoin’s. ETH thus fell by more than 20% in December 2021, ending the year at $3,682. The decline deepened in January 2022, with the price falling another 29% by the end of the month, to $2,688. In the space of two months, Ehereum lost almost 40% of its market capitalization.
By the end of January 2022, Bitcoin and Ethereum had seen declines of 44% and 45% respectively from their all-time highs of November 2021.
Crypto mining revenue can be calculated by taking the number of coins earned by the price of the coin to its exchange price in a given period. This would explain the decrease in the value of mining revenues in January 2022.
February is set to see more impressive crypto mining revenue numbers as both digital currencies go through a rebound period from their January lows. Bitcoin has already climbed 15% since the start of the month, rising to $44,000. For its part, Ethereum is currently holding above the $3,100 mark.
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