ETH miners saw 39% surge in revenue as fees soared during the DeFi craze, while Ethereum price didn’t rise significantly during this time
According to Glassnode, cryptocurrency miners took home 450,089 ETH in fees ($ 168.7 million), and this represents a 39% increase over last month in which miners made roughly $ 113 million in fees. In which Ether miner revenue skyrocketed during September, it can be said now three times more profitable to mine Ether than it is to mine Bitcoin. While the Ethereum price did not rise significantly during this time, miners on the Ethereum network saw their revenue increase due to high fees.
While Ethereum price didn’t rise significantly during this time, miners saw their revenue increase due to high fees
Strong revenue growth for Ether miners stemming from their operations in the decentralized finance sector peaked in September and caused transaction fees to skyrocket on some occasions.
During the same period, Bitcoin miner revenue from fees not only paled in comparison but actually decreased. BTC miners made $ 26 million in September, a 50% decrease compared to the $ 39 million earned in August. According to data from crypto mining pool F2Pool, it is now three times more profitable to mine Ether than mine Bitcoin.
Bitcoin vs Ether – All Miner Revenue | Source: glassnode
DeFi has revealed a strong use case for Ethereum and created a new demand for Ether to be used as gas to pay for transactions and smart contracts. These factors have pushed ETH forward by 2020, allowing it to outperform Bitcoin by a significant margin.
Moreover, a noticeable amount of BTC has flowed into the Ethereum blockchain in WBTC and RenBTC, further increasing activity on Ethereum. To date, nearly $ 1 billion worth of BTC has been tokenized through Wrapped BTC alone.
As revenue for Ether miners increases, new participants will join the network to reap the benefits. The network’s hash rate is also steadily increasing, breaking its all-time high on October 7, another fundamental bullish sign for Ether. It shows more people participating in investing in the network.
Recent data also shows that new users have flocked to Ethereum. As AZCoin News reported, MetaMask, a popular Ethereum browser wallet widely used in DeFi, has hit a whopping 1 million monthly users this month as the number of ETH holdings continues to grow, but whether Ethereum Can you handle the extra downloads placed on the network?
DeFi will make or break Ethereum
DeFi is creating traction for Ethereum and has helped bring many miners back into the network. Still, it should also be noted that fees have reached unsustainable levels due to network congestion.
Since users are competing for their transactions to be processed, they pay higher fees. On September 2, a standard transaction on Ethereum cost an average of $ 15, according to data from Blockchain.
While this is good for miners in the short term, it can prevent the average user from using DeFi entirely as smart contracts become too expensive to use. In fact, this very issue could be one of the main reasons for the sharp correction in the price of DeFi tokens in the last month.
While the second layer solutions were intriguing, most people didn’t use them. Other more permanent solutions like Ethereum 2.0 are coming. Seemingly far from ready, which could lead competitors like Binance’s smart chain to take action or even overtake Ethereum altogether partially.
Some analysts believe that the DeFi “craze” may be over as its popularity has subsided, and regulatory intervention is imminent.
However, Ethereum is compelled to solve its scalability problem quickly if it has to compete with DeFi and the possible development of new trends like Non-Fungible Tokens.
You can see the ETH price here.
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