The hash price on the Bitcoin network reached a significant level, rising to $125,000 per “exahash”. reached. As we reported as Koinfinans.com, this level was last recorded in July 2021.
This metric, which shows miners’ revenue per unit of computing power, shows a strong interaction between transaction fees and network activity.
James Check, chief analyst at Glassnode, pointed to the increase in transaction fees as a counterbalance to the 200% increase in hash rate.
Although hash price is often overlooked in the cryptocurrency market, it is one of the most important metrics. The hash price represents the earnings a miner can expect for each exahash of processing power they contribute to the network.
This value is calculated by dividing the daily mining revenue by the total network hash rate. A higher hash price means miners get more revenue for the same amount of computational work; This could be due to increased transaction fees or the higher price of Bitcoin itself.
The recent increase shows that the overall profitability of mining is increasing despite increased competition between miners.
Gecent data shows that the Bitcoin network is processing almost an all-time high number of transactions per day.
The distinction between monetary transactions, which are close to reaching a historical peak of 334,000 per day, and inscriptions, which account for 250,000 transactions per day, reveals that most of the network activity is monetary focused.
This increase in transaction volume means higher fees collected by miners.
As miners have been able to fit more transactions into each block, the increase in fees has become a vital component of hash price growth.