coincodex.com
Key highlights:
- Ethereum miners brought in $2.35 billion in revenues in May, surpassing even Bitcoin miners on this front
- The Ethereum blockchain handled $666 billion in adjusted on-chain volume
- The Ethereum transaction fee market will see a big change in July, thanks to EIP-1559
Ethereum miners brought in record revenues in May
Ethereum miners collected $2.35 billion in revenues in May, representing an all-time high in monthly revenue. In terms of total revenue, Ethereum miners even surpassed Bitcoin miners, which brought in $1.45 billion.
The Ethereum blockchain processed $666 billion in adjusted on-chain volumes in the month of May. According to The Block researcher Lars Hoffman, this was the first month ever in which the Ethereum blockchain handled more on-chain volume than Bitcoin.
On a monthly basis, Bitcoin typically miners bring in more total revenue than Ethereum miners, although it’s not uncommon to see the situation being reversed when it comes to profitability.
These on-chain milestones are showcasing Ethereum’s rapid growth in relation to the rest of the cryptocurrency sector, and some analysts are even anticipating that ETH is in a strong position to surpass BTC as the premier digital store of value. For example, analysts at U.S. investment bank Goldman Sachs say that there is a “high chance” of this occurring.
Ethereum miners collect a 2 ETH block reward approximately every 13 seconds, when a new block is added to the blockchain. On top of that, they also receive the transaction fees that users pay when making transactions. Miner revenue is calculated by adding transaction fees and block rewards. Ethereum miners collected $1.03 billion in transaction fees, which was the first time this figure surpassed $1 billion.
Ethereum’s transaction fee market will see a big change in July, when the London hard fork implements the EIP-1559 proposal. Once EIP-1559 is in effect, transaction fees paid in ETH will be burned instead of going to miners. However, users will have the option of including “tips” for miners in order to have their transactions processed faster.
In May, ETH reached its all-time high of almost $4,400 after starting the month at just under $3,000. In the second half of the month, however, ETH suffered a massive price correction alongside the rest of the cryptocurrency market.
The price slid all the way down to $2,000 before buyers stepped in en masse to stem the bleeding. The coin is now in a period of consolidation and the ETH/USD exchange rate is currently at around $2,710.