Victor Ugochukwu · Dec 14, 2020 . 5min read
Ethereum miners earned $166 million in transaction fees in September, a new record
In September especially, while Bitcoin miners earned $26 million, Ethereum miners earned $166 million which is 6 times more than BTC.
By Victor Ugochukwu · Oct 3, 2020 . 6min read
September is undoubtedly a month to remember for Ethereum miners who earned $166 million in transaction fees setting an all-time high for the blockchain network.
For context, September is the first month in Ethereum’s history where transaction fees surpassed block rewards. Since June this year, perfectly fitting with the explosion in DeFi, Ethereum miners have been earning more than their counterpart on Bitcoin network. In September especially, while Bitcoin miners earned $26 million, Ethereum miners earned $166 million. This is a whopping six times over the biggest blockchain and cryptocurrency by market cap. September’s figure also surpassed recent all-time in transactions fees in August by 47%.
Factors that contributed to the record Ethereum miner transaction fees
DeFi has been the single most contributing factor to Ethereum network’s recent exponential growth. Most significantly, transaction fees on the network spiked to record highs causing critiques to resume their lambasting of Ethereum.
Recall that the leading decentralized exchange (DEX) Uniswap released its UNI token in September and went ahead to airdrop to exchange users. As reported by Glassnode, traders burnt over $1 million in transaction fees in a bid to claim their tokens. Uniswap’s total trade volume was $15.4 billion out of the $23.5 of the entire DEX volume for September.
As well, newer DeFi protocols are still springing up even though their proliferation has reduced sharply. While Ethereum miners were smiling to the bank due to the pike in transaction fees, some network users have had to suffer this excruciating rise in fees.
As we can see, median transaction fees on Ethereum reached its all-time high in September. By 2nd September, each transaction priced around $8.25 with 1.18 million total transaction count. Obviously, the normal transaction on Ethereum should not consume as much. However, DeFi transactions are more complex and therefore guzzle up huge gas costs. They usually thrive on-chain for utmost security although we are now seeing newer innovations like the recent USDC enabled on Matic network.
Irrespective of what many of the Bitcoin maximalists might say, Ethereum is already living the dream of the future where miners no longer earn block rewards but just transaction fees. This, of course, will only start happening when the last bitcoin is mined, and that is still a distance in 2140, more than a century to come.
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