Victor Ugochukwu · Dec 14, 2020 . 5min read
Ethereum miners earned a triple of Bitcoin’s revenue due to DeFi explosion in Q3
In Q3, Ethereum miners earned an average of $305 million per month compared to $90 million of Q1 and Q2.
By Victor Ugochukwu · Oct 13, 2020 . 5min read
Ethereum due to its low throughput and high network activity may be clogged during peak transaction times causing huge pains to average network users who have to pay high fees. As the high fees shoot up, Ethereum miners enjoy to the bank with high revenues so much so that it nearly tripled Bitcoin network’s revenue in Q3.
Bitcoin halving which happened in May is an epochal event in the history of the largest cryptocurrency network. Since May, DeFi transactions on Ethereum exploded reaching one all-time high and breaking it days after. However, during Q1 before bitcoin halving and the super DeFi growth, Bitcoin miners revenue averaged at least four to five times more than their Ethereum counterparts.
As the graph above shows, Bitcoin miners revenue fell sharply by more than 30% after the halving and this was the inflexion point for Ethereum miners to overtake their Bitcoin counterpart. While the hash rate remained largely unstable for Bitcoin network, Ethereum at this point was picking up nicely. And this was due to the DeFi boom largely sparked by the Compound yield farming frenzy. By the time Bitcoin hash rate stabilized miners earned an average of $350 million monthly.
Ethereum Miners revenue maintained a growing pattern from June to September
The DeFi boom that the cryptocurrency sector recorded climaxed during the DeFi Summer. And by this time, the cumulative earnings for miners had tripled nearly reaching and surpassing Bitcoin by August and September. For context, the Ethereum network’s market capitalization is a fifth of Bitcoin. In Q3, miners earned an average of $305 million per month compared to $90 million of Q1 and Q2.
Summarily, bitcoin miners made about $3.35 billion in revenue compared to their counterparts on Ethereum that made $1.34 billion year-to-date.
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