BREAKING: Ethereum miners earned $500,000 transaction fees in an hour

In August, Ethereum transaction fees have risen more than 38 times hitting $113 million, thus resulting in huge gains for Ethereum miners

By · Sep 1, 2020 . 5min read

Ethereum miners gas fees

Ethereum miners have not stopped smiling to the bank with the latest being as they earned as much as $500,000 in transaction fees in an hour.

According to recent data from Glassnode a blockchain and cryptocurrency analytic firm, Ethereum miners received $8,124,365 in transaction fees as of August 31st.

Ethereum miners transaction fees
Source: glassnode studios

Of these record fees, Ethereum miners earned $500,000 within an hour representing a new record high for a single hour. However, the cryptocurrency analytics firms state that this excludes anomalous transaction fees it reported earlier this year.

Furthermore, mean transaction fees network users pay to miners is approaching its latest all-time high in last month August. Recent data shows mean transaction fees is $6.57. This is just slightly below the $6.68 of August 13.

For context, as of April, transaction fees on Ethereum network was only $3 million. Fast forward to four months later in August, transaction fees have risen more than 38 times hitting $113 million. Total transaction fees have also surpassed previous all-time high in Jan 2018 by 1.8 times.

Ethereum miner transaction fees overshadow Bitcoin miner fees.

Compare this with Bitcoin, and the growth becomes even clearer. Bitcoin miners earned $39 million in August, almost three times less. Much of this growth on Ethereum is because of the recent DeFi boom. This is evident in how Uniswap and other DeFi protocols consume gas reported by Ethgasstation.

Ethereum miners earned $500,000 transaction fees in an hours

However, with the growth comes, the fees spike also. With stablecoins booming Ethereum’s largest ERC20 token by market capitalization, Tether has also been growing. Transfers involving Tether ranks second on Ethgasstation as shown in the image above.

However, as miners may be smiling now, it’s not all gloom as there are now “gassless sends” where fees in ETH are abstracted away from transactions. Tether also is aggressively pursuing Layer 2 solutions to help with Ethereum network decongestion.

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