The hashrate of the Bitcoin blockchain is experiencing a significant increase, indicating a widening gap between the network’s activity and the market value of its cryptocurrency, bitcoin (BTC).
According to data from Glassnode, the hashrate—indicative of the computational power needed to mine a block on Bitcoin’s proof-of-work blockchain—reached a record high of 838 exahashes per second (EH/s) on a 14-day moving average. Additionally, it surged to 974 EH/s in a 24-hour period, marking the second highest level recorded.
However, evaluating the hashrate over a 24-hour frame may not provide an accurate picture due to fluctuations in block time; hence, longer time spans yield more dependable insights. In just two days, Bitcoin’s difficulty adjustment—which is recalibrated every 2016 blocks to keep a 10-minute block time—is predicted to increase by over 3%, setting a new peak.
This disconnect between the hashrate and the price of bitcoin is particularly striking. Despite bitcoin’s price being approximately 25% lower than its all-time high, mining expenses continue to grow. To maintain profitability and cover both operational costs and capital investments, miners rely on a strong bitcoin price, complete blocks, and elevated transaction fees.
Currently, miners generate income through two primary sources: block rewards (which stand at 3.125 BTC per block in this epoch) and transaction fees. Nonetheless, transaction fees are currently exceedingly low—averaging about 4 BTC per day, equating to roughly $377,634. As the block subsidy for bitcoin continues to halve every four years, ongoing or escalating transaction activity will be crucial for sustaining mining incentives.
Nearly Empty Blocks
Mononaut, a developer from Mempool, recently pointed out that Foundry USA Pool mined the emptiest “non-empty” block in over two years, which contained only seven transactions—a rarity only eclipsed by a block with four transactions back in January 2023.
This scenario suggests that while the rising hashrate implies a thriving network, the existence of almost empty blocks illustrates a powerful engine running at full speed but without any passengers.
This situation alarms Nicolas Gregory, the creator of the Mercury Layer and a former Nasdaq Board Director.
“Half-empty bitcoin blocks tell a story — promoting the store-of-value narrative could jeopardize its future,” Gregory commented on X.
“I hope bitcoin enthusiasts understand that this space encompasses more than just podcasts, discussions, and the ‘number go up’ digital gold narrative. If we fail to encourage real commerce usage of bitcoin, it could be the end of the line,” Gregory continued.
