The third Bitcoin Halving (BTC) has passed, and the Bitcoin Network has just experienced its first difficulty adjustment after the third block reward reduction. The difficulty has been reduced from 16.1 trillion to 15.14 trillion, which is approximately a 6% reduction, providing some relief to the miners who have survived so far.
Hashrate on the Bitcoin network experienced a significant decline after halving
It is important to recognize that the hashrate of the network cannot be seen directly; rather, it must be calculated from the average production time of the block and the level of difficulty. According to the analysis of block generation time, the Bitcoin network has experienced a significant decrease after halving with an average block generation time of 560 seconds in the last 1,000 blocks before halving and fell to 689 seconds per 1,000 recently announced plans, will be powered, cboe global markets, decentralized identity (did) project, disincentivize 51% attacks, a now-resolved legal fight, settled a civil charge, tied to the price of gold, srn token sale, ama in 2014 after halving, approximately a 20% increase in the average block generation time, indicating that 20% of the network hash rate has gradually disappeared over the period.
Since the first adjustment in the difficulty after the 2020 halving began, the average block generation time is now around 706 seconds, indicating that the network is still trying to reestablish itself and squeeze out the inefficient miners.
The average mining revenue per 1,000 blocks experienced a jump in fees of about 15%, compared to 4% before halving. Miners‘ commission income increased by 200% immediately after the halving of the block reward, and slowly increased to a higher level of almost 30% at the current peak due to the increase in average transaction fees. The average number of transactions per block has remained relatively stable.
Network operators now pay higher fees to compensate for the slower block production time after halving. It will still take time to stabilize the miners‘ fee income to reflect the healthy growth of the Bitcoin network.