For the first time, the mining revenue on Ethereum hit an ATH of $1.37 billion in February. This marks a 65.1% rise from the previous month’s earning of about $829 million.
A large chunk (52.8%) of the total mining revenue came from the high transaction fees charged on the network. The remainder (47.2%) was from block subsidies. According to Etherscan, Ethereum recorded the highest average hash rate of 423,581.9243 GH/s on March 02. This indicates about a 38.3% increase in mining activities since the year began.
Mining difficulty has also grown to 5,362 TH/s, which is about a 17% rise from the previous difficulty recorded in February. The newly made ATH is not surprising as miners could have sold Ether to make more money when the transaction fee was still high.
Upgrade May Cause a Slash in Ethereum’s Mining Revenue
Not long ago, the gas fees on the network dropped drastically from its ridiculously high value of $38 to about $10. The drop came after Ethereum CEO, Vitalik Buterin announced an upgrade tagged Ethereum Improvement Proposal (EIP) 3298.
According to the CEO, the proposal will considerably lower the demand for gas tokens by removing the gas refunds on the “SELFDESTRUCT” function in the London upgrade. Since the news release, the gas fees has dropped below $10. Right now, an ERC20 transfer on the network will cost, on the average, $7.25.
On Feb. 28, Vitalik also announced the EIP-1559 which aims to reduce miners’ revenue in a bid to lower the high gas fees. Therefore, ETH fees would be rewarded to ETH holders and not miners. This would reduce the volatility of the network’s gas fees but cut out miners’ transaction fees reward.
The EIP-1559 is critical to the evolution of Ethereum’s network. However, there are opposing views concerning the upgrade. The F2Pool has supported the view, while the SparkPool called it “robbery”.