Ethereum miners earned $498,000 in fees and Bitcoin miners $308,000

According to Glassnode, the profits of ethereum miners (ETH) are nearly $200,000 higher than those of bitcoin miners (BTC). The increase in rate on the ethereum network corresponds to an increase in on-chain activity. According to Glassnode's data, Ethereum miners earned $498,000 in commissions, compared to only about $308,000 for Bitcoin miners. said Glassnode:

Daily Ethereum network fees surpassed Bitcoin fees yesterday. $498k vs. $308k. So far, this has only happened on 141 days (8%).

It can be seen the comparison between Bitcoin’s and Ethereum’s daily network fees. The last time that Ethereum miners recorded higher profits than Bitcoin’s in 2020 was in March when the network experienced congestion as cryptocurrencies prices plummeted.

On the other hand, it can be seen that there has been a significant increase in the fees received by Bitcoin miners after the halving. As the rewards were reduced, the fees per transaction were increased to their yearly-high of $1,750,000 and thus the miners were able to maintain profitability.

Rates have been reduced as the Bitcoin network recovers. There has been an increase in its hashrate and it is approaching pre-halving levels at 126E, at the time of publication. The introduction of new mining hardware and the reduction in difficulty have also contributed to this drop in fees.

Tether (USDT) takes over Ethereum network

The increase in Ethereum’s fees is motivated by 3 reasons: the increase in on chain activity as a consequence of the use of the stablecoin Tether. The stablecoin has consumed an average of 39.8 Gwei in the last 30 days. Second, the proliferation of dapps suspected of being Ponzi schemes that have flooded the network. Finally, the increase in demand for ETH.

Glassnode noted that only between June 5 and 6, 9,500 unique Ethereum addresses transferred Tether every hour. This represented a new all-time high and an 820% increase from June last year.

In the short term, a rise in for the ETH price could occur. Ryan Sean Adams, founder of Mythos Capital, stated that there is a historical correlation between the ETH price and transaction fees:

(…) It seems that we are in one of those rare periods when the rates of the blocks rise faster than the price of ETH. At this point, either the block rates must go down or the ETH price must go up for this historical relationship to be reversed.

However, congestion and high fees have become a problem for Ethereum users. As reported by CNF, some developers and community members have requested that the gas limit or block size has to be adjusted. A resolution has not yet been reached. Other users are more inclined to wait for the scalability solutions that Ethereum 2.0 will bring. But the upgrade is still in development and must meet technical requirements before the launch of its phase 0.

Author : Reynaldo