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Dogecoin Miners Revenue Up 4,500% This Year

Daily miner revenue has risen above $3 million this week.

Apr 28, 2021 at 11:30 a.m. UTC
Updated Sep 14, 2021 at 12:48 p.m. UTC

The dogecoin (DOGE) army is not the only one making a killing this year. Miners responsible for generating the Shiba Inu-themed cryptocurrency may also be laughing their way to the bank.

  • The daily revenue of dogecoin miners rose to a record high of $3.6 million on April 26, marking a 4,575% rise from the New Year's day tally of $77,000, blockchain data provided by ByteTree shows.
  • Revenue estimates assume miners, who operate predominantly on cash, sell their coins immediately.
  • Miners receive newly created coins and transaction processing fees as a reward for mining blocks and processing transactions on the distributed ledger.

Dogecoin daily miner revenue

  • The price of dogecoin has rallied by 7,000% this year, sending miner revenue skywards.
  • The meme-based cryptocurrency reached a record high of 45 cents on April 18 and was last seen changing hands near 32 cents, up nearly 20% rise on a 24-hour basis.
  • Data provided by Coin Metrics shows a 60-fold increase in daily transaction fees this year alongside several brief spikes in the number of daily transactions.
  • However, transaction fees brought in just $23,200 or 0.64% of the total miner revenue of $3.6 million on April 26.

Dogecoin: Daily transaction fees and transaction count

  • "Transaction fees have risen, but price overwhelms," ByteTree CIO Charlie Morris said.
  • "The market has been squeezed higher. I suspect many people who owned it a few years ago have forgotten, leading to tighter supply than perceived," Morris added.
  • Some observers fear the ongoing price rally is a bubble that can burst easily as 98 wallets are holding nearly 65% of all coins. Besides, the cryptocurrency is heavily influenced by Tesla and SpaceX CEO Elon Musk’s usually humorous tweets.
  • Bitcoin bull and CEO of Galaxy Digital Mike Novogratz recently called dogecoin's rally a sign of speculative retail frenzy.
  • However, DOGE's real-world adoption is gaining traction with the Dallas Mavericks basketball team, medical supplier CovCare and several others adopting the cryptocurrency as a payments alternative.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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