3 posts
Mining chip improvements are slowing to a crawl as manufacturers hit physical limits. Profitability now depends on electricity costs and scale, not just newer rigs.
Dencun slashed L2 fees by 98%. L2s are thriving. But Ethereum L1 earned $6,000 in blob fees one week in March 2025. The scaling solution created a revenue crisis.
Transaction fees dropped from 7% to 1% of miner revenue after the 2024 halving. With the block subsidy halving every four years, Bitcoin's long-term security depends on fees replacing it. The data from 2024-2026 raises a serious question: is the fee market developing fast enough?