Bitcoin network hash rate hit a record high in May, reaching its fifth consecutive month of an increase in network activity. This indicates the network’s health and security, with a larger hash rate resulting in a more secure network.
However, JPMorgan analyst Reginald Smith expects a slowdown in hash rate growth over the coming months due to the difficulty in finding available rack space.
Despite this, the mining difficulty, another metric that typically moves in tandem with the Bitcoin hash rate, also reached a record high in May, and the crypto transaction fee increased, driving modest earnings upside for the industry.
Although, in recent weeks, Bitcoin transaction fees have returned to their historic average of approximately 0.5 BTC per block mined. Last month, Bitcoin lost about 8.0% due to macro uncertainty, but the network activity remained incredibly strong. JPMorgan tracked an aggregate increase of 5.0% in the market cap of 13 U.S. listed miners, reaching $6.7 billion.
Overall, Bitcoin’s network health and growth show a positive trend despite the volatility in the crypto market.