The share of fees in Bitcoin miners' revenues has collapsed to an all-time low: what is happening with the network
On August 11, the share of transaction fees in the revenue structure of Bitcoin miners was only 0.69%, one of the lowest figures in the past decade. This is an alarming signal for the entire ecosystem of the first cryptocurrency, as it exposes a fundamental vulnerability in the network's security model.
My calculations and on-chain data analysis show that fees have accounted for less than 1% of BTC miners' income for a year now. The last time comparable values were observed was when Bitcoin traded below the $400 mark. The indicator fell below the current level only in April, reaching 0.52%.
Reward Structure: The Subsidy Decides Everything
The bulk of miners' income currently comes from the block subsidy of 3.125 BTC. This amount was halved after the halving in April 2024. Such a low share of fees increases miners' dependence on Bitcoin's price dynamics, making them extremely vulnerable to volatility.
According to my cost estimation model, the estimated average cost of mining one coin on August 11 was $78,254. Meanwhile, digital gold is trading around $64,100. This situation means that a significant portion of miners are operating at a loss, which inevitably leads to market consolidation and the exit of inefficient players.
Hashrate: A Drop of One-Third from the Peak
The blockchain's computing power is also showing negative dynamics. The total hashrate has collapsed by 33% from the peak values of October 2025 — from 1.3 ZH/s to the current 898 EH/s. This is one of the most significant reductions in computing power in the network's history.
I attribute this trend to declining mining profitability and a strategic pivot by public companies toward AI and high-performance computing. Automatic difficulty adjustments have so far failed to reverse this trend, indicating the depth of the problem.
Mining profitability remains at extremely low levels: the hashprice is $31.6 per PH/s per day, only slightly higher than figures from a week ago. In early August, analysts recorded one of the longest periods of decline in computing power in the network's history.
My conclusion: the current situation is not just a cyclical phenomenon but a structural shift. The decline in the fee share to a minimum, coupled with the simultaneous drop in hashrate, creates a risk to network security in the long term. Bitcoin needs to find new incentives to maintain mining activity; otherwise, we may face fundamental changes in the network's economy.