Transaction fees have significantly dropped from $80 million post-halving to $6 million as of April 26, marking a significant contrast in the share of Bitcoin miner earnings that come from these fees. A recent analysis by CryptoQuant showcased a notable decrease in the ratio of transaction fees, now representing 35% of the total miner revenue as opposed to the previous 75%, recorded on April 19. Such a shift illuminates the impact of the recent halving event on the cryptocurrency market.

The fourth Bitcoin halving event, which recently occurred, resulted in a reduction of miner block rewards to 3.125 bitcoins (BTC) from the previous 6.25 BTC, causing a decline in daily issuance from an average of 900 BTC to 450 BTC. Following the halving day, daily earnings for miners soared to $100 million, driven by a substantial surge in transaction fees. Transaction fees on the Bitcoin network peaked at 1,258 BTC ($80 million) on the halving day, an unprecedented level accounting for 75% of the total revenue generated.

A pivotal factor influencing the spike in transaction fees was the introduction of the Runes protocol, triggering heightened network activity post-halving. The Runes protocol facilitates the issuance and transfer of fungible tokens by storing data in OP RETURN codes, saw a remarkable upsurge on the halving day with a record 512,000 uses as users embraced the new protocol.

Despite the momentary surge in fees post-halving, the subsequent 24 hours saw a swift decline, with fees stabilizing at lower levels. Presently, transaction fees make up 35% of the total miner revenue, with earnings currently at approximately $50 million—a 35% drop from the pre-halving peak of around $78 million. YCharts data underscored the decline in Bitcoin transaction fees from $80 million on April 20 to $6 million, with an average of $16 million over the past week and the lowest figure recorded on April 26.

The convergence of decreasing transaction fees and the stagnant movement of Bitcoin prices above $64,000 poses challenges for miners, given the halving-induced reduction in block rewards. The diminished fees, coupled with the ongoing struggle for BTC to breach the $64,000 mark, could potentially force some miners to reconsider their operations or exit the market. However, CryptoQuant highlighted that it is premature to discern any prolonged effects on the network hashrate post-halving, as miners continue to operate at a consistent pace similar to pre-halving figures. The current Bitcoin network hashrate stands at 617 EH/s, with a hash price of $0.07 per TH/s, the lowest level observed since October.