In March, a positive month for ether’s recovery in the crypto market, ethereum miners earned a total of $1.29 billion (roughly Rs 97.4 crore) in the past month, new data shows. While this is still a long way from the all-time high set last November, it does bode well for miners who have endured a rough few months during the winter. Almost all of the $1.29 billion (approximately Rs 97.4 crore) came from bulk subsidies, while less than $100 million (approximately Rs 7.55 crore) came from transaction fees.
According to The Block, from February 2022 to March 2022, the total monthly revenue of Ethereum miners increased by about 7.2%. More importantly, this marks a break from the downtrend that started in November 2021. At the time, miners operating on the second-largest blockchain network earned more than $2 billion (approximately Rs 151 billion), but over the next few months, that number began to plummet.
A large portion of miner revenue growth appears to be the result of EIP-1559, which came into effect last August 2021 with the London upgrade. The EIP-1559 upgrade introduces a major overhaul of how transaction fees are estimated. EIP-1559 split transaction fees, the base fee is now destroyed, while allowing miners to only receive tips.
For its part, Ethereum is also moving away from proof-of-work mining entirely as it prepares for a “merger.” Sometime in mid-2022, it will switch to a new proof-of-stake verification process. That said, this upgrade will not reduce transaction costs for Decentralized Finance (DeFi), Non-Fungible Tokens (NFT), etc. on the Ethereum chain, as it is only related to the consensus mechanism that secures the network. Merging does prepare for future upgrades to sharding, which will lower gas fees.
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