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July 6, 2021
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Market Overview
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Price |
24H |
YTD |
| Bit Digital |
$6.03 |
3% |
-76% |
| Bitfarms |
$4.07 |
0% |
82% |
| Canaan |
$7.66 |
5% |
10% |
| Ebang |
$2.99 |
4% |
-62% |
| Hive |
$3.73 |
2% |
37% |
| Hut 8 |
$5.37 |
4% |
80% |
| Marathon |
$30.55 |
1% |
147% |
| Northern Data |
$84.00 |
0% |
2% |
| Riot |
$36.70 |
1% |
95% |
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Data as of 12:00 UTC
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Four charts that explain Bitcoin’s record mining difficulty drop.
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The difficulty level of Bitcoin mining – set by the network itself and adjusted every 2,016 blocks – just dropped by the largest percentage increment ever. As of block 689,472, difficulty fell to roughly 15 trillion, down from nearly 20 trillion at the
last adjustment on June 13.
The enormous downward adjustment in difficulty comes as the network suffered its largest quarterly loss of hash power ever thanks to the scramble to relocate ASICs after China’s crackdown on domestic bitcoin mining companies.
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The negative adjustment itself dwarfs a downward adjustment in October 2011 that was previously the largest drop. The final drop was registered at just below 28%.
Click here to continue reading this section of Mining Memo.
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Are Ethereum miners leaving China too?
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On-chain data indicates ether’s price drop and lower on-chain activity are the main culprits behind lower network hashrate, in addition to Chinese miners turning off machines.
- Network hashrate peaked May 21 at 610 TH/s, according to Coin Metrics. Total hashrate now resides just under 500 TH/s.
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Ethereum network hashrate exodus accelerated with both the Chinese mining ban and 50% drop in the price of ether. Three of the top Ethereum mining pools lost significant hashrate, with the majority leaving after Sichuan’s ban.
Click here to continue reading this section of Mining Memo.
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Only 5% of June’s bitcoin mining revenue came from fees.
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Revenue from network fees dropped to a 12-month low in June, representing less than 5% of the total dollar-value of block rewards from last month. A steady uptrend over the past year in revenue share from fees is now fully broken following a slight decline in May.
Fees are important to replace the gradually decreasing subsidy and thus sustain the network’s security through mining profitability.
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Fee revenue is lower because fewer people are transacting on the Bitcoin network.
Data from Coin Metrics shows both the number of daily transactions and the number of active address making those transactions are declining. Variance in these levels is significant from day to day, but the trend is easily visible.
Click here to continue reading this section of Mining Memo.
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A Pacific Northwest heatwave draws attention to immersion bitcoin mining.
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It has been uncomfortably warm in the Pacific Northwest, to put it mildly.
A “1,000 year” heat wave or “heat dome” has descended upon the majority of the PNW with temperatures reaching into the 40 degrees Celsius this week, according to the New York Times
. Most every governmental body north or south of the Canadian border has issued heat warnings as stories emerge of roads buckling and
energy lines
melting.
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Bitcoin miners in the area haven't been spared. Hosting facilities are reporting temperatures as high as 49 degrees Celsius leading to under hashing, reboots and cooling issues within many facilities.
Click here to continue reading this section of Mining Memo.
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Proof of Work Overview
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| Bitcoin |
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7D |
YTD |
| Price |
$34,123 |
-6% |
18% |
| Difficulty |
14T |
-28% |
-23% |
| Revenue* |
$0.32 |
31% |
48% |
| Hashrate |
91 EH/s |
1% |
-34% |
| Ethereum |
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7D |
YTD |
| Price |
$2,306 |
4% |
215% |
| Difficulty |
6,478T |
4% |
74% |
| Hashrate |
484 TH/s |
5% |
65% |
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* measured by $/TH/s
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Mining Newsfeed
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🧭 Hashrate tokens are down a lot more than bitcoin.
Since the market’s latest peak earlier this year, tokens nominally backed by certain amounts of hashrate have dropped precipitously. Binance’s token BTCST is down over 94%, and it’s collapse started shortly before bitcoin’s peak in April. Price depreciation for these assets is caused by a combination of the cryptocurrency market’s collective downward price action and the significant loss of hashrate suffered through the Q2 2021.
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🧭 Bitcoin’s network lost half of its hash power last quarter.
Everyone is talking about mining lately, and it’s because Bitcoin’s hashrate fell off a cliff after China announced a crackdown on mining activities. In Q2 2021, Bitcoin suffered its largest percentage loss of hashrate ever of over 49%. It will take time to restore this hash power as the ASICs behind it are scrambling to find available hosting space outside of China, but capacity is extremely limited.
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🧭 Bitcoin mining revenue dropped below $1 billion in June.
Since January, Bitcoin miners consistently earned over $1 billion in total monthly revenue. But the market’s crash ended that streak in June when miners brought in a meager $839 million, down -43% from the $1.4 billion earned in May.
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🧭 Remember dogecoin miners? They’re rich.
Cryptocurrency markets may be down a lot, but dogecoin miners are still making a lot of money. In June, dogecoin miners raked in nearly $125 million. This sum is 34% less than the record $189 million earned in May, but the revenue decline is rather mild compared to bitcoin’s -42% month-over-month decline in miner revenue over the same period.
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🧭 Geography can affect Bitcoin block propagation.
Faculty at the Technical University of Berlin published a study on relative block propagation gates across different geographical regions. They found China, Africa and South America lag North American and European block propagation times by as much as 84%. Read more in the comprehensive report here.
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The Chinese Hashrate Migration with Yulong Liu of Babel Finance
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The North American Bitcoin Mining Index with John Lee Quigley of Compass Mining
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Compass is a modern media and Bitcoin mining company focused on driving the mass adoption of cryptocurrency. Our research analysts and content creators strive to provide actionable and engaging content on the most relevant industry topics.
For more information, to share content ideas, or to discuss mining news, email us at media@compassmining.io.
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