- Ether miners made 450K in transaction fees during DeFi peak
- DeFi to make or break the Ethereum network
- The DeFi craze may have Ended
Ethereum News Today – according to reports, the on-chain data on the Ethereum network shows that miners posted a 39% rise in revenue. This comes at a time when transaction fees have soared in the DeFi craze. Ethereum miner revenue has skyrocketed in September according to data given by the onchain analytics platform glass node.
While Ether price didn’t rise significantly during this period, miners on the Blockchain network saw their revenue rise as a result of high transaction fees. ETH miners took a whopping 450,089 ETH in transaction fees (about $168.7 million) home. This shows a 39% rise in the last 30 days during which miners made $113 million in transaction fees.
DeFi Could Make or Break the Ethereum Network
In the same period, the miner revenue for Bitcoin’s miners from fees paled in comparison to that of Ethereum’s miners. It even decreased. BTC miners made just $26 million in September, which is a 50% drop. This is a huge drop compared to the $39 million it earned in August. Based on data given by mining pool F2Pool, it has become three times more profitable to mine the Ethereum network than it is to mine on Bitcoin’s network.
DeFi is reportedly creating traction for the Ethereum network. It has helped to bring a good number of miners to the network. Note that transaction fees got to unsustainable levels as a result of network congestion. Because users are competing for transactions to be completed and higher fees have to be paid for this to happen. According to data from Blockchair, on September 2, a transaction on Ethereum was $15 on the average.
DeFi Craze May Have Ended
While the news is great for miners it is only beneficial in the short-term. It might chase casual users away from DeFi as smart contracts will become too expensive. This issue may be one of the key reasons for the sharp DeFi token correction prices in the last 30 days. While several second layer solutions have gained traction recently, most people do not use them. Meanwhile, several other more permanent solutions including the upcoming Ethereum 2.0. appears to be far from being ready. This perceived delay may make competitors like Binance’s smart chain take action or overtake Ethereum altogether.
Some analysts believe the DeFi “craze” may have ended as its popularity has dropped and regulatory intervention has become an issue by the day In any case, the Ethereum network must solve its scalability issues as soon as possible if it must contend with DeFi as well as the growth of new trends like Non-Fungible coins.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.
