Ethereum miners are reportedly earning more than Bitcoin miners over the past few days. One of the reasons for this is that the price of Ether has risen significantly over the last few months while the price of the leading cryptocurrency Bitcoin is still stagnated.
Ethereum Miners Earning More than Bitcoin Miners
Data from the Block’s Dashboard indicates that Ethereum miners are now making $77 million in daily revenue as of 10th May, compared to the $67 million that Bitcoin miners are earning.
The data have been calculated based on the average of the last seven days, even though a noticeable pattern has been seen over the past few months.
For instance, in early February and late April, Ethereum miners saw a surge in their mining revenue.
A key reason for this is due to Ethereum’s rising price. After starting the year at $730, Ethereum is now worth currently worth above $4,000. Another reason is due to the network’s soaring transaction fees.
Ethereum miners usually earn their revenue in a mix of transaction fees known as gas paid in Ether and block subsidies for generating new ETH.
On May 10, the Ethereum network minted roughly $89 million in transaction fees, the highest in its history.
Yesterday, ethereum did $89M in transaction fees, the most ever in one day.
That’s an annual run rate of $32.5B in fees.
EIP-1559 is estimated to burn ~70% of fees and would have burned $62M in ETH yesterday. EIP-1559 launches in a little over two months.
— Ryan Berckmans (@RyanBerckmans) May 11, 2021
A reason for this is that gas fees have been rising over the past few days. In less than ten days, the average transaction fee spiked from around $8 to $64 on May 10, the highest transaction fees ever recorded on the network.
Ethereum Miners to Accept the EIP 1559
Currently, 40% of the Ethereum miners’ revenue is coming from gas fees. But with the Ethereum Improvement Proposal (EIP) 1559 coming into effect in July, a portion of the fees will be sent to the network itself instead of miners.
To put it simply, From July, there will be two fees, per the EIP 1599, a base fee and an inclusion fee rewarded to miners. The base fee will be burned, and only the inclusion fee will go to the miners with the intention to reduce transaction fees for users.