The mining industry witnessed significant milestones in 2020, particularly for Bitcoin (BTC) and Ethereum (ETH). Key events included Bitcoin's third halving, Ethereum's DeFi-driven growth, and major mining pool revenues crossing $10 million thresholds. Here's a comprehensive analysis of last year's mining landscape.
Key Highlights of 2020 Mining Industry
- Total Output: BTC mining generated ~$5.01 billion, while ETH mining yielded ~$2.69 billion.
- Energy Consumption: BTC mining peaked at 77.78 TWh (equivalent to Chile’s annual usage); ETH mining reached 14.64 TWh (comparable to Tunisia).
- Mining Difficulty: BTC difficulty adjusted 28 times (43.79% annual increase); ETH difficulty rose 52.20%.
- Revenue Leaders: 6 BTC pools and 2 ETH pools exceeded $10 million in estimated service fees.
Industry Overview: Growth and Challenges
Post-Halving Stability for Bitcoin
Bitcoin’s May 2020 halving reduced block rewards from 12.5 to 6.25 BTC. Despite initial concerns, rising BTC prices ($29,000 year-end) helped mining revenue stabilize near 2019 levels (~$50.12 billion). Transaction fees surged 108.97% YoY, contributing 6.69% to miners’ income vs. 2.8% in 2019.
Ethereum’s DeFi-Driven Boom
ETH mining thrived due to DeFi’s explosive growth:
- Revenue Peaks: September 2020 saw ETH mining outpace BTC ($4.89B vs. $3.27B).
- Fee Dominance: Transaction fees accounted for 16.06% of ETH mining revenue (vs. BTC’s 6.69%).
Mining Metrics: Difficulty and Hashrate
| Metric | Bitcoin (BTC) | Ethereum (ETH) |
|---|---|---|
| Yearly Hashrate Δ | +35.91% (153 EH/s) | +98.78% (281 TH/s) |
| Difficulty Δ | +43.79% | +52.20% |
| Key Driver | Price surge (+304%) | DeFi adoption |
Notable Trend: Both networks saw hashrate growth lag behind price appreciation, suggesting potential "excess profits" for miners.
Top Mining Pools and Revenue
BTC Mining Pools
- F2Pool: 17.53% hashrate share; ~$266M estimated fees.
- Poolin: 14.81% share; ~$200M fees.
- BTC.com/AntPool: >10% shares each.
Exchange Pools Rising: Binance Pool (+11.48% share) and Huobi.pool (+9.39%) gained traction.
ETH Mining Pools
- SparkPool: Dominated with 32.69% share ($7.72B output).
- Ethermine/F2Pool: Combined ~45% share.
👉 Explore leading mining platforms for real-time insights.
Hardware Trends: From ASICs to Custom Rigs
BTC Miners
- Top Performers: Bitmain’s Antminer S19 Pro ($124/day profit) and MicroBT’s M30S++.
- Market Leaders: Bitmain (25 models), MicroBT (19), Canaan (17).
ETH Miners
- Custom Rigs: Grew to 41.67% of market (e.g., Innosilicon’s A10 Pro).
- Top Earner: Linzhi Phoenix (2600 MH/s; $1,477/day profit).
FAQs
Q: How did Bitcoin’s halving impact miners?
A: Post-halving fee revenue rose 4.75x, offsetting reduced block rewards.
Q: Why did Ethereum mining profitability spike?
A: DeFi transactions congested the network, driving fees to 30% of revenue.
Q: Which mining pools are most profitable?
A: F2Pool (BTC) and SparkPool (ETH) led in revenue and hashrate share.
👉 Compare mining strategies to optimize returns.
Outlook for 2021
- BTC: Fee income may rise further if transaction activity grows.
- ETH: Layer 2 solutions could reduce fees but hinge on adoption.
Data Sources: PAData, Digiconomist. This article is for informational purposes only and not investment advice.