Ethereum Mining Revenue Surpasses Bitcoin in Last Full Month of PoW Before Merger
Ethereum mining revenue surpassed Bitcoin again in August as miners rushed to contribute power to the validation of proof-of-work (PoW) ETH transactions before it becomes a proof-of-stake (PoS) asset in September.
Ethereum dominated headlines in August due to the upcoming merger that will be completed before the end of September. The merger will eventually transition Ethereum to a PoS protocol that will scrap mining rewards for effort.
As a result, ETH miners contributed powerfully to the validation and verification of millions of transactions on the Ethereum network last month.
This ultimately led to a 21% revenue increase from $620.65 million in July to $756.11 million in August.
Despite this, the income was far below what the miners generated within the same period last year. As of August 2021, ETH mining revenue was in the region of $1.5 billion, and last month’s figure was down 50% year-over-year.
Bitcoin surpassed Ethereum’s mining revenue again
Like Ethereum, Bitcoin miners saw an increase in earnings from July. That was a 9.9% increase from $597 million in July to $657 million in August. Several analysts believe BTC could have brought more revenue in August had it not been for an increase in mining difficulties to a peak of 30.98T during the month.
The milestones reached by BTC in 2021 meant miners shared a whopping $1.41 billion in earnings last August. This year’s value was down 53% year-on-year.
Ethereum continues to be involved in more transactions than Bitcoin
Miners earn rewards by contributing power to the validation of transactions involving PoW coins. In the whole of August, ETH was used in 34.9 million transactions.
Ethereum’s transaction volume was more than four times that of Bitcoin. Much of this can be attributed to ETH being involved in several sectors such as decentralized finance (DeFi) and non-fungible tokens (NFT).
In August 2022, ETH was trading in an area of $1424 and $2030
For the sake of comparison, BTC was used in 7.81 million transactions during August.
The number of transactions involving BTC was four and a half times that of ETH. When BTC shed more than $60 billion of its market cap in August, miners earned less.
During this time, BTC traded in a range between $19,509 and $25,200.
In 2022, ETH surpassed BTC in mining revenue for every month except June.
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