As of August 11, transaction fees accounted for just 0.69% of the earnings of Bitcoin miners, remaining near its lowest level in a decade, according to Rafael Schultze-Kraft, co-founder of Glassnode.
A mere 0.7% of $BTC miner revenue comes from transaction fees, and has been sub 1% for almost a year.
Bitcoin was below $400 the last time fee share was this low.
Security budget funded almost exclusively by block subsidy. pic.twitter.com/DPr3TMklY7— Rafael (@n3ocortex) August 11, 2026
The only time this figure was lower was in April, when it reached 0.52%.
Experts note that for the past year, transaction fees have contributed less than 1% to the revenue of Bitcoin miners. The last time similar levels were recorded was when Bitcoin traded for under $400.
Currently, the primary source of miners' rewards is the block subsidy, which stands at 3.125 BTC. This amount was halved following the halving event in April 2024.
The diminishing share of transaction fees increases the network participants' reliance on Bitcoin's price. According to Checkonchain's model, the estimated average cost of mining one Bitcoin as of August 11 was $78,254. At the time of this writing, Bitcoin is trading around $64,100.
Hourly chart of BTC/USDT on Binance. Source: TradingView.Hashrate Declines by One-Third from Peak
At the same time, the computational power of the blockchain is also decreasing. According to Hashrate Index, the hashrate has plummeted by 33% from its peak in October 2025, dropping from 1.3 ZH/s to 898 EH/s.
Source: Hashrate Index.Analyst Will Clemente linked this trend to the declining profitability of mining and the reallocation of some public companies' resources towards AI and high-performance computing. He noted that automatic difficulty adjustments have not yet reversed this trend.
Charles Edwards, founder of Capriole Investments, described the situation as "the least discussed concerning event for Bitcoin in 2026." He observed that the decline in hashrate has accelerated since April.
This is the least talked about, concerning Bitcoin development in 2026. And it's only worsened since. https://t.co/0yTO4a9FLk
— Charles Edwards (@caprioleio) August 11, 2026
Meanwhile, mining profitability remains low. At the time of writing, the hash price was $31.6 per PH/s per day, down from $32.07 a week earlier.
Source: Hashrate Index.It is worth noting that earlier in August, analysts from Bitcoin Magazine Pro highlighted one of the longest periods of declining computational power in the network's history.