For the second time in the previous year, Ethereum miners earned more than Bitcoin miners in May.
The price of ETH, which hit a file excessive of $4,164 on may 10, as well as hefty transaction costs at the congested community, contributed to Ethereum’s supremacy in can also. The busier the network grows—and it has grown extremely busy as a result of the surge in decentralized finance (Defi) applications and NFTs—the more competitive it becomes to complete a transaction; fees increase in response to supply and demand. Fees accounted for little over $1 billion of ETH miners’ revenue last month, compared to $130 million for BTC miners. The transaction fees for Ethereum consistently outpace those of Bitcoin.
The addition of EIP-1559 in a July network improvement referred to as the “London hard fork,” as well as the remaining switch to evidence-of-stake consensus, are two coming near occasions on the way to alternate Ethereum’s mining landscape.
Ethereum transaction expenses should be burned rather than distributed to miners, according to EIP-1559. Through lowering the amount of ETH in flow, the drift could increase the price of block rewards in US bucks.
Proof of stake, on the other hand, will put an end to mining and replace it with “staking.” Essentially, the community may be safeguarded by means of humans depositing ETH into it. If they correctly validate blocks of transactions, they’ll receive new incentives, but if they don’t, they’ll lose a piece of their investment.
Therefore, Ethereum miners should not become overly accustomed to their newfound wealth.