In this issue of Coin Metrics’ State of the Network, we provide an update on the Bitcoin mining landscape, including miner revenues, exchange flows, and ASIC distribution. We also explore how Bitcoin is being used today, whether as a medium of exchange or a store of value, and what that means for miner incentives and the network’s long-term sustainability.
Key Takeaways:
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Miner revenues have stabilized post-halving, but fees remain low, keeping pressure on long-term incentives. Mining operations continue to adapt, investing in efficient hardware and tapping into renewable energy sources.
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Bitmain ASICs account for a majority of network hashrate, raising concerns around supply chain risks and geopolitical disruption.
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Bitcoin is gradually evolving into a store of value, though efforts to expand its transactional utility through Layer-2s and other developments are ongoing.
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As block rewards decline, sustaining miner incentives over the long term may require higher-value transactions and greater competition for block space to drive meaningful fee revenue.
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