Bitcoin (BTC) miners in 2023 have collected a daily average of $2 million in transaction fee revenue, according to data from Coinmetrics.

The value reportedly showcases a 400% increase compared to last year’s averages.

Bitcoin Miners Revenue Increases Year Over Year

According to a Dec. 23 post on X (formerly Twitter) made by Jameson Lopp, the Co-founder and CTO of BTC self-custody solutions company Casa, Bitcoin miners generated revenue exceeding $10 billion in 2023, adding to the total of $57 billion collected in the past 15 years.

Revenue collected via transaction fees by bitcoin miners averaged nearly $2,000,000 per day in 2023. This is up 400% year over year. pic.twitter.com/zZjUwy1Gbh

— Jameson Lopp (@lopp) December 23, 2023

In the post, Loop reckoned the estimation could mean miners immediately convert Bitcoin to fiat currency. However, he said it was improbable that was the case, as miners often embrace “HODLing” onto their Bitcoin asset for potential long-term gains.

This month, miners’ total daily revenue block rewards and transaction fee revenues clocked an annual high of $64 million, almost a 400% increase from its year-to-date value, per data from Ycharts. Since the start of December, the daily mining activity revenue hasn’t dropped below $33.85M, signifying a large profit intake for miners in Q4 2023.

Coin Metrics also revealed the quarterly mining revenues in 2023 surpassed $2B over the last three-quarters of the year, with transaction fees collected by miners climbing over $180M in Q2 and Q4.

Mining Hashrate and Difficulty Soar as Profitability Woes Rise

In 2023, the Bitcoin network witnessed a massive surge in mining hashrate. According to Coin Metric’s State of the Network Q4 2023 Mining report, the hashrate jumped from 250 Exahashes per second (EH/s) at the start of the year to 480 EH/s.

The rise in hashrate has led to a 26% increase in Bitcoin mining difficulty over the past three months, per Coinwarz data.

With the rise in BTC mining hashrate and difficulty, profitability could take a slump, and the upcoming halving event may spell even more woes for miners overall, as the event is set to slash rewards from the current 6.25 to 3.125.

However, experts believe Bitcoin’s halving may subsequently decelerate the fast-rising mining difficulty. Furthermore, the rising hashrate showcases improving network security, which may rapidly help BTC’s price charge toward the bull market.

Earlier this month, CryptoQuant Chief Researcher Julio Moreno posted on X that the Bull-Bear market cycle indicator is signaling a recent transition into a bullish period for the first time since July. Based on the indicator, Moreno believes block rewards will increase faster than mining difficulty, increasing miners’ profitability despite the heightening mining difficulty.