Ethereum Miners Raked in $262 Million in November
In November, Ethereum miners earned$262 million as revenue, a slight decrease from September and October averages. Even with this contraction, the network is still the most dominant in smart contracting and is the home of DeFi. Part of this explains the rise of USDT usage and in trustless derivatives collateralized by the stable coin. Overly, Bitcoin miners earned more than twice made by Ethereum miners while in both networks, transaction fees contracted.
Ethereum is held together by miners, just like Bitcoin. While the Ethereum mining difficulty is rising, the average network transaction fee is shrinking affecting the amount of revenue generated by miners. Typically, besides block rewards--which were slashed by a third after the Constantinople hard fork, miners are also rewarded with transaction fees collected in the mined block. The drop in miner revenue could be because DeFi-mania is cooling off since price averages in November were on average higher than in both September and August. Before Dec 1, Ethereum prices rallied to over $630 in expectation of Eth2 Phase 0 launch.
Impact on the ETH Price:
Neutral. Ethereum is transiting. It could be a year from now or five, depending on developers’ efforts. Still, Miners revenue is a gauge of activity that in turn could be used to estimate price performance. The higher the Gas fee, the more there is activity on the base layer, and the more there is the demand for ETH.
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