Ethereum miners generate revenue in multiple ways. They receive the block reward, but also benefit from overall network fees, Those Ethereum fees have recently spiked to over $400 daily, raising a few questions along the way.
Ethereum Fees are Mooning
Given all of the recent cryptocurrency market momentum, it is evident that something is brewing. Whether this is a new bull run, remains to be determined. Ethereum has noted some solid price gains in recent weeks, yet it remains to be seen how long all of this can be sustained. Interestingly enough, this week’s mining revenue from Ethereum fees is worth the same amount as 1 full ETH.
Looking at the chart by Glassnode Studios, the spike in Ethereum fees is rather apparent. Throughout 2020, there have been a few ups and downs where these fees are concerned. An overall surge in mining revenue from Ethereum fees has been taking place since early January. Based on the recent momentum, this revenue stream will not dry up either.
For Ethereum miners, this is good news. Earning more money will help keep operations alive a bit longer. Considering how Ethereum will eventually switch to proof-of-stake, miners need to squeeze out every cent of earnings they can. A significant rise in network fees is a welcome bonus.
Where are the Fees Coming From?
Contrary to what some people might expect, there are some unusual contributors to these higher Ethereum fees.
Uniswap V2 is the biggest contributor, as the platform generates the most overall network fees. This platform makes it easy for traders to explore DeFi tokens, and its volume has been skyrocketing ever since. Uniswap has spent nearly $7 million in Ethereum fees over the past 30 days.
Tether’s USDT remains high on this list as well. The stablecoin continues to generate a lot of attention and volume. With nearly $6.4 million spent on fees in 30 days, the gap to Uniswap v2 has become a lot bigger. That is not necessarily a bad thing, yet an intriguing development regardless.
A new scam is making the rounds on Ethereum as well. Known as Smartway Forsage, its address has been labeled as a scam by the community. Despite this label, the project still spent $2.19 million in fees last month. Its associated address still receives transactions even today, however. Ponzi Schemes always tend to attract user funds even after getting flagged.
Other contributors to an increase in overall Ethereum fees include Nest Protocol and 1Inch Exchange. Interacting with the Ethereum blockchain is proving beneficial to any project exploring this option. Moreover, this surge in fees shows that Ethereum will equally benefit from all of these “layered” solutions.