Data Behind Major Cryptocurrency Halving: Price Pumps 143%, Mining Profit Soars 77%
Recently, bitcoin has been the leader in “cryptocurrency halving” as major cryptocurrencies’ prices pump by 143% on average, which seems to usher the crypto market into the bull market.
Generally, cryptocurrency halving is thought to control inflation, stabilize value, thus promoting the stability of blockchain network.
Historically halving has had a positive impact on the price of the leading cryptocurrency in the long term. Halving is developed to prevent coin inflation. Unlike central banks, printing cash at their discretion, the number of bitcoins is limited. Thereby, cryptocurrency becomes scarcer and more valuable and even becomes more like gold than a “freely printable” national fiat currency.
One of the crypto investors’ expectations for cryptocurrency halving is the soaring of the currency price. Judging from BTC’s previous halving, its currency price did pump after halving. It is expected that in May this year, BTC will leave a broad impact on crypto market.
BTC will get halving for the third time this year, DASH will get halving for the sixth time this year, while BCH, BSV, ETC will get halving for the first time.
Since entering the year of halving, the prices of the seven major cryptocurrencies have all soared. From January 1 to February 5, BTC rose 34.27% to $9628 in more than a month. However, the current price soaring is still lower than the soaring in the first half of the previous bitcoin halving.
However, BTC is the smallest one of price soaring among having this year as the price of BCH, BSV, BTG, DASH, ZEC and ETC soared by 115.82%, 208.45%, 123.19%, 193.82%, 154.62%, and 176.13% respectively. The average price soaring of the seven major cryptocurrencies soared by 143.76%.
Although the price is constantly soaring, seen from the data on the chain, the number of daily transactions is basically stable at present, only BTG and DASH have a higher number of daily transactions in a few days as they immediately recover the daily average level.
Due to the impact of halving, the cryptocurrency prices have soared step by step, but the block reward have not been reduced, so the mining profits of crypto miners has been significantly improved. Since entering the year of halving, the average daily mining profits of the seven major halving cryptocurrencies have increased by 77.79%.
Among them, BTC’s profit per T every day rose from $0.154 at the beginning of this year to $0.184 on February 10, an increase of about 19.48%, while BSV’s mining revenue growth was lower than that of BTC, only 14.58% as of February 10, it could make a profit of $0.165/T.
Two anonymous coins have the highest increase in mining revenue. DASH increased by 168.23% from $0.008/G every day at the beginning of the year to $0.021/G on February 10, while ZEC increased by 129.87% from $0.040/K every day at the beginning of the year to $0.091/K on February 10. In addition, the mining profits of BTG and ETC both increased by more than 90%, reaching 98.31% and 92.83% respectively.
After the second BTC halving, the mining profit fell precipitously and failed to recover the level before halving within half a year. However, now major Chinese ASIC miner makers Whatsminer, Bitmain and Canaan have all been announced to postpone the production, delivery and after-sales time as the state is affected by coronavirus. In the future, the computing power may mainly come from the stock market, and the limited growth of computing power may add more uncertainty to the BTC halving.