Ethereum Miner Revenue Outpaces Bitcoin In 2021

Best Owie

Last Updated: June 11, 2024 2:36 pm

3 mins read

Picture of an Ethereum coin on a circuit board

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

[vc_row][vc_column][vc_column_text]

Ethereum has so far put up a tremendous run in 2021. Its price has hit multiple all-time highs this year, cementing it as one of the best digital assets to be invested in for the year. Major upgrades to the network like the London hard fork have seen the project move towards a deflationary mechanism, creating scarcity in the asset by burning one-third of the fees issued on the network.

The ETH mining industry also felt the heat when the Chinese government had begun its crackdown on crypto mining in the middle of the year. Like bitcoin, its mining revenue had been affected by the crackdown. However, ETH did not suffer as much as bitcoin did from this move. Hence, miners of the asset have seen good returns on their activity. The difference has been evident in the mining revenue between bitcoin and ethereum miners.

Ethereum Outpaces Bitcoin Mining

Mining revenues between Ethereum and bitcoin mining show a discrepancy in their figures. For one, Ethereum miners have definitely had the more profitable year out of the two. Although not a very wide gap, it is still a notable difference in the returns from both assets. While ETH miners saw a total of $17 billion in revenue from their mining activities, bitcoin miners only saw $13.6 billion.

Volatility between the two assets has also played into how the figures have turned out. Bitcoin mining is associated with high volatility. Yet, ETH has it beat as the asset with the most volatility. ETH mining volatility sat at a staggering 47% compared to bitcoin’s 28%. This volatility in daily revenues plays a big role in the revenue figures for ETH miners.

ETH outpaces BTC mining metrics | Source: Arcane Research

The average daily revenue for BTC mining is $45 million. For ETH, this figure is $56 million. In metrics like average fee percentage of daily revenue and revenue correlation with fees, ETH also recorded higher figures.

ETH price trading above $4,500 | Source: ETHUSD on TradingView.com

ETH Fees Go UP

Since Ethereum miners’ revenues are largely dependent on fees, the rate of sending transactions on the network greatly affects the mining revenue. As such, ETH’s volatile fee nature can play a positive or negative role in the revenue returns of miners. When fees go up, so do the revenue returns for miners go up, and vice versa. Furthermore, ETH miners usually have a short window where they can collect the revenues, represented by the 0.55% fee correlation shown above.

This correlation has played in the favor of ETH miners this year. The growing popularity and adoption of decentralized finance and NFTs have seen fees skyrocket on the network. Being largely dependent on fee revenue, miners have benefitted the most from this spike. Despite the fee burn, rewards for miners on the blockchain are up for the year.

ETH mining revenue from fees sits at 53% | Source: Arcane Research

Compared to Ethereum, transaction fees on the bitcoin network have remained mostly low since the bull rally ended in April. ETH miner revenues were made up of 53% of fees for the year. Meanwhile, transaction fees only contributed 1% to the total miner revenue for bitcoin.

Featured image from Crypto News Flash, chart from TradingView.com

[/vc_column_text][/vc_column][/vc_row]

Best Owie

Best Owie is a seasoned managing editor with a wealth of experience currently serving as the Managing Editor at NewsBTC. Best is a highly skilled professional with a track record of producing engaging and informative content. With a keen eye for detail and a passion for accuracy, Best is committed to ensuring that each article published meets the highest standards of quality.

Best has over six years of experience in the crypto industry and has overseen the creation and publishing of thousands of articles over the years. Best is always abreast of everything that is going on in the crypto industry in order to create and curate the most relevant content for readers. This shines through in Best’s publications, which are always clear and concise, enabling easy reading and understanding for all.

Best is also an avid learner and advocate for new technology. This has seen Best dive into topics in areas such as decentralized finance (DeFi), non-fungible tokens (NFTs), Layer 2 blockchains, etc. In addition to this, Best is a vocal member of the crypto community across various social media platforms such as X and Reddit. Best’s work garners tens of thousands of readers monthly, who rely on the information in these publications to keep up-to-date with everything happening in the crypto community.

Best’s articles explore breaking news, intricate systems such as yield farming, liquidity pools, and other decentralized finance (DeFi) systems. This is because Best understands the importance of information to gaining financial freedom and believes that everyone should have access to this information.

Best also believes in leveraging the blockchain for philanthropy to create the most positive social impact. This involves work with charitable organizations focused on financial literacy and education. With each article, Best lends a voice to important issues such as a more financially inclusive future, transparent systems for growth and development, and technology that is not self-serving but one that serves all of humanity.

When not curating engaging content, Best can be found reading a book with a cup of hot chocolate, enjoying a Netflix series, or exploring the outdoors with Green - the world’s most quiet and well-behaved Husky. Best’s interests also span other industries such as art, finance, and security, attending seminars and conferences in not just the crypto industry but other industries as well.

As an animal lover, Best is also involved with charities for animals, local shelters, and rescues. Best is also involved in local events that promote inclusivity, such as being a prominent member of hiking clubs and a cycling club, as well as being a part of a very happy group of animal lovers.

Best is a true professional in every sense of the word, with an exceptional dedication to producing high-quality work. This shines through in Best's work on and off the clock. These include advocating for inclusive crypto education for all, the impact of financial illiteracy, and the benefits of adopting new technologies such as cryptocurrencies. Best’s prolific career in the media industry is a testament of how hard work and dedication pays.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.