Ethereum miners are making a killing from transaction fees. In August alone, the miners raked in a total of $113 million in profit, up more than 3,660% from the $3 million earned in April, according to the latest data from Glassnode.
Fees have risen so high that on September 1, ETH miners made a record profit of over $500,000 in just one hour. At the time of writing, it cost about $6.57, on average, to send a transaction over the Ethereum (ETH) blockchain. That compares with fees of just $0.09 in April.
Analysts blame the soaring transaction costs on the continuing hype within the decentralized finance (Defi) space, which has grown into a $9 billion industry within a matter of weeks.
According to Etherscan, defi protocols such as Uniswap, which is built on the Ethereum blockchain, is one of a few with the highest network utilization. Tether (USDT), Sushi Swap, and Yearn Finance (YFI) are the others.
As the ethereum community continues to show concern over steep fees, developers have been testing technical solutions to reduce costs and improve efficiency, including a network upgrade dubbed Ethereum 2.0. But the project is still several months away from coming to fruition.
To those replying with ‘gas fees are too high’, my answer to that is ‘well then more people should be accepting payments directly through zksync/loopring/OMG’. Seriously, scaling to 2500+ TPS for simple-payments applications is here, we just need to… use it.
Meanwhile, by comparison, bitcoin (BTC) miners earned $39 million from transaction fees in August, almost three less than Ethereum miners. Ether shot up more than 11% to $483 during the 24 hours to September 1, as per markets.Bitcoin.com data. The coin traded at just above $400 two days earlier.
What do you think about the soaring Ethereum miners’ income? Let us know in the comments section below.
The post Fees Bonanza: Ethereum Miners Pocket a Record $113 Million From Fees in August appeared first on Bitcoin News.