Sky-reaching Transaction Fees Make Ethereum More Lucrative than Bitcoin for Miners

The skyrocketing transaction fees on the Bitcoin network have caused miners to shift their attention to Ethereum, which has a lower fee structure. While this is positive for new users who want more transactions at less cost, some worry that it’s creating a bubble in cryptocurrency markets and endangering the future of decentralization.

Register now on Binance, add 50$ and get 100$ bonus voucher!

The “uniswap” is a tool that allows users to trade one cryptocurrency for another without having to pay transaction fees. This has made Ethereum more lucrative than Bitcoin for miners.

Sky-reaching-Transaction-Fees-Make-Ethereum-More-Lucrative-than-Bitcoin-for

 

Miners have regularly earned more money from the Ethereum network in recent months than they did from hashing Bitcoin over the same time span. According to statistics provided by analytics company Glassnode, the revenue generated by individuals mining the Ether token reached an all-time high of 95,000 ETH early this month. This continued a pattern in which Ethereum has ‘outperformed’ Bitcoin in terms of mining rewards.

The heightened activity surrounding BAYC inventor Yuga Labs was ascribed to the size of near-crazy transaction fees that were noticed on the Ethereum blockchain a little over a week ago. For its Otherside metaverse project, the blockchain technology company produced NFTs – Otherdeeds – which tipped the scales for gas costs on Ethereum.

On Bitcoin’s plate, it’s not that appealing.

Bitcoin’s productivity fell by a substantial 31% in the year ending April 2021, extending the number of months in which Ethereum has outperformed Bitcoin in terms of miner income. According to statistics from The Block Crypto, Bitcoin miners made $1.16 billion in April, while Ethereum miners made $1.39 billion. Despite a 17 percent monthly decline in miner income year over year, Ethereum still outpaced Bitcoin.

Ethereum has already outperformed Bitcoin in terms of miner payouts, winning by In previous months Ethereum has recorded higher miner rewards, beating Bitcoin by $0.26 billion, $0.19 billion, and $0.13 billion in January, February, and March, respectively. April’s $0.224 billion in more revenue than Bitcoin was the second-highest of any month this year..26 billion, In previous months Ethereum has recorded higher miner rewards, beating Bitcoin by $0.26 billion, $0.19 billion, and $0.13 billion in January, February, and March, respectively. April’s $0.224 billion in more revenue than Bitcoin was the second-highest of any month this year..19 billion, and In previous months Ethereum has recorded higher miner rewards, beating Bitcoin by $0.26 billion, $0.19 billion, and $0.13 billion in January, February, and March, respectively. April’s $0.224 billion in more revenue than Bitcoin was the second-highest of any month this year..13 billion in January, February, and March, respectively. The In previous months Ethereum has recorded higher miner rewards, beating Bitcoin by $0.26 billion, $0.19 billion, and $0.13 billion in January, February, and March, respectively. April’s $0.224 billion in more revenue than Bitcoin was the second-highest of any month this year..224 billion in income generated by Bitcoin in April was the second-highest of the year.

Ethereum miner payouts are maintained by transaction activity.

The network’s usability has driven it to compensate users more generously than Bitcoin, and the main advantage Ethereum has over Bitcoin is the contribution transaction fees make to overall miner payouts.

Due to the network’s application in decentralized finance, including usage in play to earn games and NFTs, Ethereum may charge greater total transaction fees than Bitcoin. For example, in April, the majority of Bitcoin earnings ($1.14 billion) came from block subsidies, with just $12.98 million coming from transaction fees. Transaction fees brought in $82.88 million for Ethereum.

This, on the other hand, is a two-edged sword with one serrated edge.

Register now on Binance, add 50$ and get 100$ bonus voucher!

While miners get high-value payouts, users must cope with a slow-performing network as well as exorbitant gas expenses. These exorbitant transaction fees might be even more of a burden for customers if they are paid just to have transactions fail.

The price of an asset is compounded by the amount of mining rewards + transaction fees every block to calculate mining income. As a result, miner incentives are influenced by the relative values of ETH and BTC.

Market performance of Bitcoin and Ether

The market’s crypto assets have maintained the poor performance that began in the first days of the month.

During Thursday’s trading session, Bitcoin fell below $28,100, hovering near its lowest price level this year. BTC was trading at $28,030 at the time of writing, down 11.15 percent on the day and 29.25 percent in the past seven days. This is the first time Bitcoin has been near $28,000 in almost two years.

Ethereum is in the same boat, having just lost support over $2,000 for the first time since July. Ether had fallen to a ten-month low of $1,748 earlier today, but has subsequently recovered. The price was last seen at $1,918. The drop of 20.82 percent on the day brings the seven-day drop to 34.44 percent.

Visit our Investing in Ethereum page to learn more about Ethereum.

The “why are mining fees so high on uniswap” is a question that has been asked by many people. The “Sky-reaching Transaction Fees Make Ethereum More Lucrative than Bitcoin for Miners.”

Related Tags

  • coinbase
  • ethereum revenue chart
  • bitcoin transaction fee
  • cheapest crypto to transfer
  • ethereum mining revenue

Register now on Binance, add 50$ and get 100$ bonus voucher!

Recent Articles

Tonga accepts Bitcoin donations amid tsunami onslaught

A small island of Tonga has been hit by a tsunami, and the country is calling for donations in Bitcoin. The nation’s Prime Minister...

How to Buy Solana (SOL) in India

It is important to know how you can buy SOL in India. It’s no secret that the Indian market has only recently begun to...

How to Buy Flow (FLOW) in India

Flow is a cryptocurrency that was introduced in June 2018. It uses the Ethereum blockchain platform, but has its own built-in digital currency called...

Moonbeam Goes Live on Polkadot, Becomes its First Fully Operational Parachain

Moonbeam, the world’s first fully operational on chain scaling solution was released into the wild this week. The Polkadot-powered platform aims to provide scalability...

Stacks ecosystem becomes #1 Web3 project on Bitcoin

The Ethereum blockchain, which powers the Stacks ecosystem’s token STX, has become the most important web3 project on Bitcoin. The announcement is a sign...

Related Stories