The share of fees in bitcoin miners' revenue has plummeted to a decade-low: what this means for 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 ten years. This is an alarming signal that I closely monitor in my analysis: the first cryptocurrency's network is becoming increasingly dependent on block subsidies rather than real economic activity.
The metric has remained below 1% for nearly a year. The last time comparable values were recorded was when Bitcoin traded below $400. This is the historical context that underscores the depth of the current phase: miners are effectively earning income solely from the block subsidy, which was halved after the April 2024 halving — down to 3.125 BTC.
Hashrate has collapsed by a third from its peak
The situation is compounded by a decline in the network's computing power. The hashrate has dropped by 33% from the all-time high of October 2025 — from 1.3 ZH/s to the current 898 EH/s. This is not just a correction but a structural shift, which I associate with falling mining margins and the mass transition of public companies into the artificial intelligence and high-performance computing sectors.
Automatic difficulty adjustment has so far failed to reverse this trend. In my view, this indicates that some capacity is leaving the network not temporarily but permanently — in favor of more profitable directions.
Mining profitability remains at minimal levels: the hashprice stands at $31.6 per PH/s per day, only slightly below the figure from a week ago. Meanwhile, the estimated average cost of mining one coin, according to the Checkonchain model, is $78,254, while Bitcoin trades around $64,100. Miners are operating at a loss at current prices — this is fundamental pressure on the market.
Some analysts have already called what is happening "the most under-discussed alarming event of 2026." I tend to agree: the reduction in hashrate has accelerated since April, and this could have long-term consequences for the network's security and decentralization. However, it is worth noting that such capitulation periods have historically cleansed the market of inefficient players, leaving room for more resilient operators. The question is only how long it will take to restore the balance.