Bitcoin ETFs Dey Slash Fees, Squeeze Miners as Solana Dey Grow
Bitcoin ETFs don cause big change for on-chain demand. Transaction fees for Bitcoin blockchain don collapse to low way wey no don happen for like ten years, e don drop more than 80% since April 2024. Spot ETF inflows hold over 1.3 million BTC off-chain now. Dis kain wahala don put pressure for miner revenue, with fees no even make up 1% of block rewards. Miners dey face lower profit and dem dey do other business like AI and high-performance compute hosting to reduce power and equipment cost.
Meanwhile, retail people don shift from Bitcoin go faster, cheaper blockchains. Solana dey see more memecoin and NFT trading, e dey carry retail growth for network. Ethereum market remain steady, with ETH dey around $4,780 despite market up and down.
The low on-chain demand dey challenge Bitcoin fee market and network security. Stock market dey praise miners wey diversify well. CoinShares Bitcoin Mining ETF don rise almost 22% this year, pure miners wey no diversify dey struggle. Galaxy Research and Rittenhouse data confirm say ETF holders no dey move their coins on-chain often, make mempool activity dey low.
To sum up, Bitcoin ETFs dey reduce transaction fees and squeeze miners. Solana dey catch retail traffic. Traders suppose watch fee-based revenue risk for mining stocks and think about Solana on-chain action for trade chances.
Bearish
Di surge wey dey come into Bitcoin ETF don make transaction fee drop reach lowest for ten years, e dey reduce wetin miner dem dey make and e dey put network security for pressure. This kin thing come make miners dey try do tins like AI and HPC hosting so dem no go just dey pure Bitcoin mining again, e mean say confidence for Bitcoin mining no too strong again. Historically, when demand for on-chain low and fee market dey low, e dey happen price correction plus bearish feeling, like we see during 2021-22 cycle. For short term, miner stocks fit still dey go down and Bitcoin price no go too rise because on-chain use dey remain same. For long term, if ETF be the only one wey dey control supply without bringing back natural demand, network fit get more wahala for stability and e fit affect miner profit badly.