In proof of work blockchains such as Bitcoin, miners play a key role by validating transactions and contributing resources to secure the network. In compensation for their contributions, miners are rewarded with coins which are issued every block. More details on how mining and the Bitcoin halving work can be found in this article.
IntoTheBlock has built a proprietary machine learning algorithm that identifies miners’ addresses and monitors their holdings and activity. For Miner Total Flows, IntoTheBlock sums the amount flowing into miners’ addresses plus the amount flowing out of them in order to gauge the total volume for miner activity. This value is also represented as a percentage of total on-chain volume in the Miner Flows Volume Share indicator.
💡 How can I use it?
Miner total flows for Bitcoin
Miner Total Flows are helpful to understand the total amount of miner activity taking place. In the graph above, we can see that total miner activity had been trending downwards, up until mid-May as uncertainty regarding Chinese mining migration arised.