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In January 2022, bitcoin miners earned 20% less than their colleagues engaged in Ethereum mining
January turned out to be a difficult month for bitcoin miners. According to a BeInCrypto study, they earned $1.2 billion in a month. Although the figures seem impressive, total revenue for the month decreased by $220 million compared to December 2021 — a drop of 15%.
Mining revenues continue to grow from 2021
The decline in mining profitability over the past month will not affect long-term profitability. Over the past year, it has increased by 8% (from $1.1 billion in January 2021)
In January, the number of active bitcoin addresses exceeded one million
Despite the decline in BTC mining revenues, the number of active addresses in January 2022 overcame the psychologically significant mark of 1 million.
The income of bitcoin miners in one day reached a maximum of $ 60.16 million
Although the profit from bitcoin mining decreased, the maximum income for one day in January 2022 was 29% of the most profitable day in January 2021 ($60.16 million and $46.31 million, respectively).
The February profit from mining is $548.22 million at the time of writing, and on February 12, the maximum for one day was recorded — $50.02 million.
Read also: The best video cards for Ethereum mining: an overview of options for rig
Mining ETH is more profitable than BTC
According to BeInCrypto research, bitcoin miners earned $1.2 billion, but ether miners managed to get $1.47 billion. Profits from Ethereum mining also decreased by 23% compared to December 2021, when total revenue was $1.91 billion. However, on a monthly basis in January, the income from ether mining increased by 11% compared to the same period last year, when a profit of $ 1.31 billion was recorded.
Miners Prefer Ethereum
Bitcoin remains the digital asset with the highest market capitalization. However, Ethereum is the leader in mining profitability. In 2022, mining revenues declined sharply, but back in December 2021, Ethereum mining brought 32% more than bitcoin mining. In January 2022, the gap narrowed to 20%.
What caused the decline in mining revenue?
The decline in market prices can be considered a key factor in reducing mining revenues. According to BeInCrypto research, in December 2021, BTC trading opened at $56,907. However, due to the deterioration of market conditions, 2021 ended for the cryptocurrency at $46,306.
Bitcoin continued to fall, dropping by another 21% in January 2022, and as a result, the value of the cryptocurrency closed at $38,483. The total market capitalization of the asset has fallen by about $280 billion since the beginning of December 2021.
Similarly, Ethereum started December 2021 at $4,623. The price of ETH is closely related to the value of BTC and follows it, which is why the cryptocurrency fell by more than 20% in December 2021. Thus, the ether ended the year at $3,682. By the end of January 2022, the value of Ethereum had decreased by another 29%, and the price was set at $2,688. Within two months, Ethereum lost almost 40% of its market capitalization.
