Ethereum miners' income hits record high, will ETH price rise further?
Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc)Editor's Note: This article comes from
Babbitt Information (ID: bitcoin8btc)
Babbitt Information (ID: bitcoin8btc)
, Author: Alexander Behrens, Compiler: Captain Hiro, published with permission.
Data released by blockchain analytics firm Glassnode shows that many metrics of the ethereum network have surpassed their late 2017 highs, including the amount of gas used in transactions and the profitability of proof-of-work mining that underpins the blockchain.
The data shows that the current market fundamentals of Ethereum are significantly different from those when Ethereum hit an all-time high of $1,400 two years ago, which reinforces the belief that Ethereum holders may have more to gain in the future .
According to reports, transaction fees on the Ethereum network are currently the highest ever recorded. However, data from Glassnode shows that the difficulty and hash rate currently securing proof-of-work mining activity on the ethereum blockchain has dropped by nearly 25 percent since peaking in summer 2018.
The hash rate of the Ethereum network. Source: Glassnode
A lower hash rate means that Ethereum miners can process more transactions with the same hardware. Although the amount of newly mined ETH has remained steady since February 2019, the reduction in the overall hash rate means that more gas will be paid to miners in Ethereum transactions.
As a result, miners’ fee income generated by broadcasting transactions to the Ethereum network exceeded 16% for a few days, and even exceeded 19% at one point. In contrast, when ETH’s price peaked in early January 2018, miners never earned more than 15% from fees.
Miner revenue for the Ethereum network. Source: Glassnode
Notably, infrastructure providers for the Ethereum network are consistently profitable due to real activity on the blockchain, especially compared to previous periods of activity loss and price optimism.
Another indicator that Ethereum has grown far beyond its all-time high price period is total gas usage. Compared with January 2018, the current total gas usage of the Ethereum network has nearly doubled, because Ethereum transactions are no longer simple transfer operations between individual wallets or exchanges, but through the use of smart contracts more complex and expensive operations to perform.
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The gas usage of the Ethereum network. Source: GlassnodeDecrypt.comThe market has shifted from speculation on decentralized applications to the use of functional applications for lending and earning returns, which is reflected in a significant increase in gas usage, so will the price of ETH follow suit?
