• For the fourth month in a row, Ethereum mining revenue surpasses Bitcoin’s

  • Ethereum’s mining revenue increased by more than 60% in August, thanks to the unprecedented hype surrounding non-fungible tokens. While Ethereum mining revenue in July was over $1.08 billion, it increased to $1.65 billion in August.

    Similarly, as Bitcoin prices climbed to new heights, mining revenue increased. Bitcoin mining revenue was just over $971 million in July, but has since risen to $1.23 billion in August, representing a 25 percent increase.

    In terms of mining revenue, however, Ethereum has outperformed Bitcoin by a large margin. In August, Ethereum mining revenue was up by around 35% compared to Bitcoin mining revenue.

    In May, Ethereum mining revenue surpassed that of Bitcoin for the first time, and the trend has continued since then. Ethereum miners have made more money than Bitcoin miners for the fourth month in a row, the longest streak in crypto history.

    Impact of EIP-1559 on Ethereum Mining Revenue

    The highly anticipated EIP-1559 proposal was finally released on August 5th. The upgrade, which was part of a larger update known as the London Hardfork, proposed changes to Ethereum’s fee mechanism, which had been deemed problematic due to its unpredictability.

    The most appealing aspect of EIP-1559, ostensibly, is that it burns some Ethereum every time the network is used. While this gives the second-largest crypto by market cap a sense of deflation, it also reduces the amount of ETH miners receive. Following the EIP-1559 update, approximately 3 ETH is burned every minute, as previously stated.

    Ethereum miners were able to earn 91,000 ETH in July as a result of their mining activity. By August, the figure had dropped to around 61,000 ETH. Despite this steep drop, the recent rise in Ethereum’s price, combined with unprecedented market activity fueled by the NFT craze, has resulted in a surge in mining revenue.

    HODLING is a strategy used by Ethereum miners.

    It’s worth noting that the balance of Ethereum on centralized crypto exchanges has dropped to its lowest point since 2018. This corresponds to the behavior of miners, who are hesitant to sell their coins despite the recent price increase.

    According to Glassnode’s previous report, there are only about 15 million Ether coins available on cryptocurrency exchanges. This represents roughly 13% of Ethereum’s circulating supply, indicating a new round of accumulation among Ethereum investors.

    On the contrary, as the leading cryptocurrency recovers, Bitcoin holders are consistently liquidating their holdings.

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