The current Ethereum network conditions do not appear to favor miners. More specifically, the overall net revenue for ETH miners has reached a monthly low. Not entirely surprising as the general total gas usage is on the decline as well.
ETH Miner Income From Fees Declines
For Ethereum miners, there are several ways to make money. Earning the block reward will remain the critical source of income under most circumstances. However, there is also the income from transaction fees. Under normal circumstances, these rewards will outshine the block reward, as Ethereum is home to costly transactions far too often.
When those transaction fees rise, ETH miners will reap the rewards. But, unfortunately, that can also give rise to selfish mining of sorts. It is not uncommon to see miners prioritize the higher-transaction-fee transfers and leave the rest untouched for hours, if not days. Maximizing the earnings is essential in the crypto world, but it shouldn’t come at the cost of the user.
Although a one-month low for ETH miner revenue isn’t a big issue, it is remarkable at this time. Not that long ago, the miner revenue from fees spiked to a multi-month high. That spike is now fully behind us, though, and may indicate more manageable Ethereum fees for the foreseeable future. Many users would be rather happy not to pay $100 in fees.
The big question is where the Ethereum miner fees will head next. If this downtrend continues, the network may finally be in a good place again. However, as activity picks up, so will the fees, as that is a vicious circle. The scaling to ETH 2.0 can’t come soon enough for Ethereum, as the network is held back by these high fees far too often.
Total Gas Usage Dips Too
The reason for the ETH miner revenue decline from fees is not too hard to find. There is a significant dip in total gas usage, as this metric hits a one-month low too. Another intriguing turn of events as overall activity on Ethereum has not slowed down in the slightest. However, any efficiency upgrade is more than welcome for both users and developers alike. Those upgrades will come in the future, but for now, transaction fees will remain hit-and-miss for the most part.
A one-month low for total gas usage comes at an exciting time for the network. With so many NFT collections and DeFi opportunities, gas usage would spike even higher. Unfortunately, today that is not the case, for reasons unknown. The coming days and weeks will prove interesting for Ethereum’s gas usage and how it affects the earnings of ETH miners.