First time in Ethereum's history, miners made more from fees than from block

[bitcoinst]

Ethereum miners made more money from gas or transaction fees than from block rewards in September.

The event has occurred for the first time in Ethereum's history, according to The Block Research. Miners made about $172 million from fees last month and about $150 million from block rewards, taking their total revenue to more than $320 million.



Overall, Ethereum miners made 53.4% more in September than August when their total revenue was about $285 million.  This is because gas fees peaked last month, driven by the continued growth in the decentralized finance (DeFi) space.

Ethereum transaction fees have subsided since then and the current average fee is about $3 per transaction, according to tracker BitInfoCharts.

https://www.theblockcrypto.com/linked/79452/ethereum-miner-revenue-september-gas-fees

[Kunnu]

There is no doubt that the last couple of months were so beneficial for Ethereum miners probably they're expecting like this with the upcoming months, probability looks higher. Now it will be interesting to see that how long it goes but one thing looks clear that this year could end up with the current situation.

[semobo]

Good info, didn't expect the fee will be go higher than the block rewards even though the transaction fee was crazy for few weeks.But this is not going to last long because already the price gets moderated as you said and it will dump more when the price of defi tokens gets dumped.

[tycsols]

This is never seen before gold rush for the miners and i think they richly deserved it because soon eth is converting to pos model so miners were tak8ng risk by mining such a coin and also we know few months ago block reward was also reduced significantly by eth developers in the preparations of eth 2.0 so no one thought that mining eth will be so profitable right before the change of the algorithm.

[wack slacker]

Miners benefit because Ethereum's transaction confirmation is based on auction, whoever pays higher gets transferred faster. Miners will benefit from this structure.
If people no longer bid to move tokens or ETH, the costs go down deep, possibly lower than they spent operating the mining equipment. There was a time in history when they had to sell equipment to cover costs.
I believe they will make a lot of money as long as the DEFI projects are built on top of Ethereum.

[el kaka22]

Rewards are something you calculate towards, because rewards are stable and they do not change according to time, obviously there could be halvings but you can calculate that as well, so that means we are talking about something people prepare themselves towards.

Fee's are not like that, fee's are something that you can't prepare for yourself, it is something it just happens time to time like these days but that is about it, you can't just assume that you will make money from fee's sometimes it is nothing at all and sometimes it is as you can see more than the reward itself which is why miners are happy about this but they are not really betting on this continuing forever neither, whatever they are planning about their future this is not part of it

[kkaroul4]

It seems that the miners really do have a good profit this past few months from transaction fees, I was just wondering what could be the reason of the increase of the transaction fee I'm not really doing good in altcoins so I'm a little bit late for some news. Was it because of the DeFi?

[harapan]

It seems that the miners really do have a good profit this past few months from transaction fees, I was just wondering what could be the reason of the increase of the transaction fee I'm not really doing good in altcoins so I'm a little bit late for some news. Was it because of the DeFi?

yes, it is because of Defi, which causes blockchain congestion and causes the price of gas to be very expensive. In my opinion, this is cheaper than last month which reached around 400 GWEI

[jossiel]

It seems that the miners really do have a good profit this past few months from transaction fees, I was just wondering what could be the reason of the increase of the transaction fee I'm not really doing good in altcoins so I'm a little bit late for some news. Was it because of the DeFi?

Yes.

The surge of the transaction fee for each Ethereum transaction is due to the Defi. Naming one of them is with the Uniswap Token. Investors took the plunge for defi projects because everyone is rushing towards it.

And in effect, we got the fees to go up and miners to earn more from it. I now see people outside the forum who are started getting back their miners and run it because of this.

[Yaunfitda]

I'm not surprised though, we have several threads already complaining about the huge fees in the last couple of months because of all the Defi hype and it clogs the network resulting to miners getting more from the huge influx of Ethereum users. So I'm expecting the fees to continue to increase as this hype is not yet done for this year. So better be ready for the increasing fees because it will really hurt us a lot in the long run.

[Princejebs]

The fenzy hype on Decentralized Finance is responsible for 70% of that revenue. Traders were ready to pay any amount of Eth for miners for transactions priority because of it inability to scale, this fees is killing dreams of some traders.
I think they may expect more when Eth2.0 finally launch their mainnet, no one should expect less fee instantly.
I can see some similar DeFi projects on other blockchain but many prefer ethereum probably because of its simplicity and popularity.

[Lerikaweb]

Because of such a phenomenon graphic cards were sold out everywhere worldwide, even on aliexpress most of them were sold out last month. Miners were trying to make as much as possible. I wonder how profitable this thing really was.

[piebeyb]

Until now there has been no sign that they want to solve this transaction fee problem, I think everyone already knows miners are making huge profits so some people might take this opportunity to mine ETH, who knows how long it will end and ETH transaction fees can cheaper than before

[peterlustig]

Of course, they would lol with the gas fees as high as 800 GWEI what else can we expect. Ethereum is giving its miners one of the best parting gifts they could have asked for. $172M in fees just for a month of September is huge

[jademaxsuy]

Of course, they would lol with the gas fees as high as 800 GWEI what else can we expect. Ethereum is giving its miners one of the best parting gifts they could have asked for. $172M in fees just for a month of September is huge

Miners had been really busy this is what had others had mention to which they demanded higher gas fee to take transaction fast. However, I am not convince because thinking about the market of ethereum which is only second to bitcoin market if we will be basing on their market cap volume.

Anyway, they had already made it that far and hopefully if there will be any issues regarding to it will be resolve like we cannot accept all the time having high fees for transaction. If it will going to happen like this then I will use bitcoin instead of using altcoins. There is no good especially when we do like to do a day trade on ethereum. Probably day trading that time had stop due to high transaction fee being made. Earnings in day trade will goes to high transaction fees.

[hatshepsut93]

I hope this won't become a trend, because new generation of Nvidia GPUs was released, and AMD will roll out their products too, and I don't want miners grabbing all the cards, this will again create negative view towards crypto by the PC community, and it's just unfair that the product gets intercepted and isn't reaching its target users, gamers in this case.

[cryptoaddictchie]

Of course, they would lol with the gas fees as high as 800 GWEI what else can we expect. Ethereum is giving its miners one of the best parting gifts

Seems reasonable to feed them off fees. Of course they knew that PoS is cominy these miners will be needed to pick a new coin to mine, as PoS will totally be an independent system which doesnt need any miners. Anyway with the current fees Im sure all miners on the eth network are quite happy to see some really good gains. But of course this is bad news for users that paying large huge chunk of fees.

[cryptomaniac_xxx]

I hope this won't become a trend, because new generation of Nvidia GPUs was released, and AMD will roll out their products too, and I don't want miners grabbing all the cards, this will again create negative view towards crypto by the PC community, and it's just unfair that the product gets intercepted and isn't reaching its target users, gamers in this case.

Yea, good point, there was a time the PC games GPU's are being collared by crypto enthusiast to be used for mining altcoins and it made a lot of money for them. However, the PC gamers are complaining because they can't even get their hands on it. I think it will become another trend if there are crypto that are cheap to mine using GPU's.

Regarding the subject though. so it's a win win situation for the ETH miners. And maybe those BTC miners who shutdown their business because of the increased difficulty probably shifted to ETH as a way to still make money out of their old mining gear.

[shoreno]

Until now there has been no sign that they want to solve this transaction fee problem, I think everyone already knows miners are making huge profits so some people might take this opportunity to mine ETH, who knows how long it will end and ETH transaction fees can cheaper than before

the news already said that the fees are now getting better , that means they are taking an action to solve the problem or maybe not but  the reason why the fees subsided could be because of the increasing number of people turned unto a eth miner thinking that they can also reap the profits like old eth miners did .

 this can be the first time in eth history but this should not be proud . how can we be proud of it as an eth user when we pay more than the money that we send or exchange .

[KimmyF]

Of course, they would lol with the gas fees as high as 800 GWEI what else can we expect. Ethereum is giving its miners one of the best parting gifts

Seems reasonable to feed them off fees. Of course they knew that PoS is cominy these miners will be needed to pick a new coin to mine, as PoS will totally be an independent system which doesnt need any miners. Anyway with the current fees Im sure all miners on the eth network are quite happy to see some really good gains. But of course this is bad news for users that paying large huge chunk of fees.

Now we can afford Ethereum blockchain fees, now cost is under 1 USD and GWEI is under 100. I thought we had to wait until the Ethereum 2.0 but now the cost is affordable. If now miners don't care about the price, in the future holders will care about the price. Although ERC-20 tokens transaction cost almost 2 USD.