Ethereum Miners Earned Record $830M in January

Ethereum Miners Earned Record $830M in January

Blockchain Featured
February 3, 2021 by Kofi Ahmed
Ethereum miners earned a record $830 million in January as network activity, fees and ether’s price all surged.
Ethereum Miners Earned Record $830M in January

 Monthly revenue has not reached this level since the previous record from January 2018 near ether’s previous all-time high, according to data estimates by CoinDesk. 

Revenue estimates assume Ethereum miners sell their ether immediately. 

On-chain data reviewed by CoinDesk, however, shows network fees in January 2018 only represented 9% of monthly revenue. Last month, nearly 40% of revenue came from network fees, totalling more than $504 million in revenue. 

Source: Coin Metrics, CoinDesk Research

Notably, fees consistently represented a low, single-digit percentage of monthly revenue every month from ether’s previous record high until May 2020, when the Ethereum-centric decentralized finance (DeFi) craze gained momentum. 

Since May, fees have represented an average of 30% of miner revenue per month. 

Growth in fee revenue isn’t surprising given the network’s consistently high transaction costs. Average transaction fees priced in dollars hit record highs on Jan. 11 passing $19, according to data from Blockchair. The previous transaction fee record was set just five months ago at $10.33 per average transaction on Sept. 1 during the peak of DeFi’s red-hot summer. 

Eager to not miss out on soaring revenue, mining activity has seen a marked increase, with the network’s hashrate following in step and reaching an all-time high Tuesday above 360,000 gigahashes per second (GH/s), per Etherscan. Mining difficulty has followed suit, recently setting a record high above 4,600 terahashes per second (TH/s) and still climbing.

Source: Coindesk

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