The share of fees in bitcoin miners' revenues has collapsed to an all-time low: what this means for the network
On August 11, the share of transaction fees in Bitcoin miners' revenue structure was only 0.69%, approaching record lows over the past decade. This is an alarming signal I have been tracking for several weeks: the network is becoming increasingly dependent on the block subsidy rather than real economic activity.
This metric has only dipped lower in April, when it reached 0.52%. Notably, fees have accounted for less than 1% of the first cryptocurrency's miners' income for a year now. The last time comparable levels were seen was when Bitcoin was worth less than $400—meaning we have regressed to a structure typical of the network's early stages.
The main source of miner rewards now is the block subsidy of 3.125 BTC, which was halved after the halving in April 2024. This situation creates a critical vulnerability: network security is effectively funded solely through issuance, making it hostage to price dynamics.
According to my calculations based on the Checkonchain model, the average cost of mining one coin on August 11 was $78,254. Meanwhile, digital gold is trading around $64,100. This means a significant portion of miners are operating at a loss, which inevitably leads to further industry contraction.
Hashrate has collapsed by a third from peak levels
The blockchain's computational power also shows alarming dynamics. According to Hashrate Index, the hashrate has fallen by 33% from the peak levels of October 2025—from 1.3 ZH/s to 898 EH/s. This is one of the most significant reductions in the network's history.
Analyst Will Clemente links this trend to declining mining profitability and the shift of some public companies' capacity into artificial intelligence and high-performance computing. Automatic difficulty adjustments have not yet been able to reverse this trend, indicating the depth of the problem.
Capriole Investments founder Charles Edwards called what is happening "the most under-discussed alarming event for Bitcoin in 2026." According to his observations, the hashrate reduction has accelerated since April—exactly when the fee share hit bottom.
At the time of writing, hashprice stood at $31.6 per PH/s per day versus $32.07 a week earlier. This confirms: mining profitability remains at extremely low levels, and the capitulation of network participants appears to be dragging on.
My conclusion: The current situation is not just a cyclical bottom but a structural shift. If the fee share does not recover as adoption and second-layer solutions grow, Bitcoin will have to reconsider the very model of economic security. The question is not whether miners will survive, but at what cost and in what composition.