Ethereum had a successful October, finishing the month with a 43 percent increase. A good October is always required for a good Q4 for any asset, and investors appear to be pleased with their current position.
However, they are not alone, as miners appear to be reaping the benefits of October profits. And the fear of EIP-1559 having a negative impact on them is gradually dissipating.
New highs for Ethereum miners
Ethereum’s bullishness throughout October resulted in a significant increase in trading and transaction volumes, as well as significant investor inflows. The accumulation trend was strong, resulting in a profitable month for Ethereum miners as well.
Despite the fact that less than 600 new miner addresses joined the network throughout October, previous miners’ consistency resulted in the hash Rate reaching new all-time highs every day. As long as there is no abrupt change, the hash rate should continue to rise in this manner.
The good news is that as a result of investors’ bullish actions, total fees paid to miners have reached a 5-month high of 16,317 ETH. Fees alone accounted for more than 54.1 percent of the miners’ total revenue.
Furthermore, based on investor profitability, miners are taking full advantage of this bullishness and are not even selling into strength, as investors have.
As a result, their total reserves increased by 23k ETH throughout October. And it appears that they will continue to do so.
What has the impact of EIP-1559 been?
The interesting part here is that even EIP-1559’s fee burn mechanism had little to no impact on miners. Despite the fact that their revenue did suffer as a result of its implementation, recent market trends have resulted in the majority of their earnings coming from base fees.
Furthermore, over 727k ETH has been burned since August, but this only accounts for 0.61 percent of total circulation. This demonstrates that EIP-1559 has not been, and will not be, a problem for miners or investors in the future.