Aug 17, 2020

5 min read

2020 Q2 Cryptocurrency Mining Industry Report

Executive Summary

1. Turbulence In the first half of the year, the Bitcoin market experienced severe volatility. The outbreak of the COVID-19 pandemic in the first quarter and the sharp drop in global stock markets caused the market to experience a “Black Thursday” on March 12.In the other hand, the third halving of Bitcoin mining reward happened in the second quarter once again stirred the market, its impact on market hash rate was particularly significant.

2. Second in history On March 26, the Bitcoin network experienced the second largest difficulty reduction in history after its sharp drop, with a proportion of 15.95%. The difficulty adjustment period is also increase as long as 17 days, far exceeding the average 14 days.

3. 800 seconds The average Bitcoin block time dropped to around 800 seconds after the March crash and the halving.

4. The decline The number of addresses holding coins between 100–1000 BTC is the only group showing a downward trend, with a decrease of 0.81% in half a year.

5. Sharply Drop The percentage of transaction fees in the total income of miners dropped sharply after climbing to a peak of 21% on May 20. The average transaction fee percentage in June was 4.3%, which was near to the average of 4.1% before the halving in May.

6. 27% Among the current 93 models, the mining machines launched by Bitmain accounted for the highest proportion, with 27%, followed by MicroBT and Canaan.

7. 17.9% In the first half of 2020, the average hash rate of new mining machines is 81T, and the average unit power consumption is 42W/T. Compared with the first quarter, the hash rate of the new machines in the second quarter increased by 17.9%, and the unit power consumption decreased by 11%.

8. Strong development momentum Lubian mining pool have sprung up after being launched in April, and their hash rate once exceeded 5% among the industry. Besides, Binance has developed a strong momentum after entering the mining pool field this year, and has occupied 5% of hash rate as of the end of June.

9. Impact China’s mining pools suffered a greater impact in the first half of the year, mainly due to the delay in the supply chain of mining machines caused by the COVID-19 pandemic and internal disputes among mining machine manufacturers, these reason cause the inability of miners to update new mining machines on a large scale and the extended delivery time.

10. Financialization The popularity of mining in the traditional financial market means that the professional requirements for mining are also become higher, and the financialization of mining industry has been driven by the general trend.

About TokenInsight

Founded in 2017, TokenInsight is a Leading Data & Tech Driven Blockchain Financial Institution. TokenInsight pioneered a complete blockchain industry classification system, covering more than 1,600 projects, releasing more than 300 rating reports, and conducting in-depth studies into 10 major industries.

TokenInsight’s data, ratings, and research reports have access to more than 70 data platforms worldwide, including Messari, Delta, Binance Info, AICoin, Huobi Info, etc., with a monthly PV of over 30 million. TokenInsight has officially joined the Data Accountability and Transparency Alliance (DATA), initiated by cryptocurrency ranking site CoinMarketCap.