Bitcoin Mining Profitability May Survive Halving, Solana's Transaction Failures Soar, Memecoins Peak
Summary:
Mining profitability might not drop post-Bitcoin halving, predicts Laurent Benayoun, CEO of Acheron Trading. In other news, Solana's non-vote transaction failure rate peaks at 75%, contributing to a poor user experience. Meanwhile, memecoins continue to dominate the 2024 crypto bull market, reaching an all-time high in traders.
Despite expectations, Bitcoin mining might still remain profitable after the upcoming halving, according to market maker Laurent Benayoun, CEO of Acheron Trading, in a recent discussion with Cointelegraph. Meanwhile, Solana is facing significant operational issues as its user transaction failure rate soars to a whopping 75%. Moreover, the crypto bull market of 2024 seems heavily influenced by memecoins.
Contrary to prevailing predictions, Bitcoin miners may not necessarily face a slump in profits post the scheduled halving event, despite the 50% reduction in Bitcoin supply provision. Benayoun explained, "It's not a given on dollar terms that miners would suffer after the halving; the reduction in mining yields could be offset by an increase in network fees."
Bitcoin halving, scheduled for April 20, is expected to cut block reward issuance from 6.25 BTC to 3.125 BTC. Past halvings have forced smaller miners out of the industry due to reduced block rewards. However, Benayoun believes the 2024 halving will be different owing to surging network fees stimulated by Ordinals transcriptions and Bitcoin-centric decentralized finance (DeFi), also known as BTCFi. He stated, "As we see more NFTs on the Bitcoin blockchain and more projects aiming to establish DeFi on the Bitcoin network, we can anticipate an upturn in network fees."
During a period marred by memecoin madness on Solana, an overwhelming 75% of all transactions on the network have been failing. Proponents, however, insist the numbers are misinterpreted. Data from Dune Analytics reveals a record high failure rate in "non-vote" Solana transactions on April 4. Solana users have been venting their frustrations on social media over the failed transactions and degraded overall user experience.
Traders and users alike acknowledge the difficulty of navigating the network, with Altcoin Sherpa admitting, "The experience has been brutal lately." In contrast, Mert Mumtaz, Helius CEO and enthusiastic Solana supporter, refutes the notion that 75% of transactions are failing. He argued that most failed non-vote transactions were merely "bot spam."
Amidst these challenges, the memecoin mania on the crypto market continues unabated, hitting a new peak. Market intelligence firm IntoTheBlock reports an unprecedented spike in the number of wallet addresses holding memecoin tokens for less than 30 days.
Q1 reports indicate that memecoins averaged a massive 1,312.6% return, driven by projects like Dogwifhat (WIF) and Book of Meme (BOME). Crypto traders have shared tales of turning a small investment into millions using memecoins. For instance, one trader turned $13,000 into $2 million within an hour leveraging the Donotfomoew (MOEW) memecoin.
Investors are advised to diligently research any investment or trading moves, considering every decision involves risk.
Contributions from Geraint Price, Sam Bourgi, and Felix Ng in reporting this article.
Published At
4/5/2024 4:00:52 PM
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