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US English

Crypto market falls as transaction costs rise

By Robert Davis

18:32, 28 December 2021

A cryptocurrency mining farm
The total hash rate of active miners has nearly recovered from its slump - Photo: Shutterstock

Many of the largest cryptocurrency assets by market capitalisation were down more than 5% Tuesday as rising transaction costs continue to eat away at mining profits.

Around mid-day EST (UTC-5), bitcoin fell to $48,650 per unit.

Ethereum was trading more than 8% below its pre-Christmas rally at $3,816 per unit, while other popular assets such as polkadot and shiba inu were down more than 10%.

Rising transaction costs

Rising transaction costs are one reason why the crypto market is missing out on the recent rally that equity investors have seen.

According to CoinDesk data, the average transaction cost was $2.75 over the past 24 hours. This total is calculated by dividing the number of transactions from a miner’s total revenue.

Meanwhile, the total hash rate of active miners has nearly recovered from its slump in early December. More than 178 million transactions have been hashed over the last 24 hours compared with the high of 181.7 million that was recorded on 9 December.

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XRP/USD

0.48 Price
+6.260% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

BTC/USD

57,805.55 Price
+0.350% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

ETH/USD

3,130.75 Price
+0.400% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BCH/USD

369.70 Price
+5.760% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

Sinking mining stocks

The lower waters in the crypto market also dragged down lower mining stocks on the New York Stock Exchange.

For instance, Riot Blockchain, Marathon Digital Holdings and Hut 8 all traded considerably lower on Tuesday.

Riot sank more than 9.6% to $23.41 per share, while Marathon Digital lost more than 11% of its value, down to $34.97 per share.

Hut 8 saw the most significant loss of the group, losing more than 13% of its value, down to $7.67 per share.

Read more: Alibaba to stop selling crypto mining rigs

Markets in this article

BTC/USD
Bitcoin / USD
57805.55 USD
200.25 +0.350%
DOT/USD
Polkadot / USD
6.1305 USD
0.1413 +2.380%
DOT/USD
Polkadot / USD
6.1305 USD
0.1413 +2.380%
ETH/USD
Ethereum / USD
3130.75 USD
12.33 +0.400%
HUT
Hut 8 Corp.
17.0104 USD
2.02 +13.570%

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