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The Bitcoin network has hit a significant milestone with its hash price soaring to $125,000 per exahash, a peak not observed since July 2021 and a return to levels seen prior to the 2020 halving.
This metric, indicative of the revenue miners receive per unit of computational power, shows a robust interplay between transaction fees and network activity.
James Check, lead analyst at Glassnode, points to an increase in transaction fees as a counterbalance to the 200% rise in hash-rate.
Decoding hash price surge
Hash price, a critical yet often overlooked metric, represents the earnings a miner can expect for each exahash of computing power contributed to the network.
This value is calculated by dividing the daily mining revenue by the total network hash rate. A higher hash price means that miners are generating more revenue for the same amount of computational work, which can be due to increased transaction fees or a higher price of Bitcoin itself.
The recent spike suggests that despite the increased competition among miners, the overall profitability of mining has improved.
Uptick in network transactions
Recent data indicates that the Bitcoin network is processing a near-all-time high number of transactions per day.
The distinction between monetary transactions, which are close to reaching a historic peak at 334,000 per day, and inscriptions, which account for 250,000 transactions per day, reveals that the majority of network activity is monetarily focused.
This increase in transaction volume translates into higher fees collected by miners.
With miners able to fit more transactions into each block, the surge in fees has become a vital component of the hash price increase.
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