Owing to the huge hype around the NFTs, the mining revenue generated from Ethereum has gained an extra 60% in August. While a total of $1.08 billion was generated in July, the total figure recorded in August is about $1.65 billion.
On the other side, there was an increase in the figure recorded from Bitcoin in terms of mining revenue in July compared to August – $971 million and $1.23 billion. This increase is about a 25% increase from the previous month.
Comparatively, in terms of mining revenue, Ethereum performed better than Bitcoin, with a huge difference. Stating precisely, Ethereum outperformed BTC by a margin of 35% in August.
Ethereum began to outperform Bitcoin in terms of mining revenue since May, and the positive difference has been kept till now. This month (August) marks the fourth month consecutively that the revenues recorded by the ETH miners have ousted that of BTC’s. This record is the longest in the history of cryptocurrency.
The Impact of EIP-1559 Upgrade on Ethereum Mining
The Ethereum Improvement Proposal (EIP-1559) anticipated by members of the crypto community was eventually launched on the 5th of August during the London Hard Fork. Many suggested that the change the proposal will cause to the gas fee mechanism of the network will be problematic because of the unpredictability attached to it.
The exciting part of the upgrade is the Token Burning Mechanism, which burns Ether after every transaction. The deflation mechanism has reduced the reward of the network miners as about 3 ETH have been burnt every minute since the upgrade was implemented.
In July, revenue generated by the ETH miners was about 91,000 ETH, but this dropped to 61,000 ETH in August. But despite the huge drop, the total revenue generated by miners still kept a positive difference in the two months owing to the recent increase in the ETH market price and the hype around the NFT market.
ETH Miners are Hodling
It is noteworthy to mention that the ETH balance on the centralized crypto exchanges has been reduced to the minimum levels since 2018. This somehow coincides with the newly adopted miners’ attitude, who refuse to sell their holdings despite the increase in market price.
The report revealed that the total ETH balance on crypto exchanges is less than 15 million ETH. This figure represents 13% of the total Ether in circulation. The implication of this is a new wave of accumulation among investors.
Comparatively, BTC holders are exiting their positions as the digital asset is recovering.