Ethereum miners made $ 2.35 billion in revenue in May, surpassing Bitcoin mining revenue for the second time in a year.
What happened: According to data from The Block, Bitcoin (CRYPTO: BTC) miners earned $ 1.45 billion in the same month.
Miners’ profits are to some extent a function of the price of the underlying crypto asset itself. While Ethereum (CRYPTO: ETH) outperformed Bitcoin for most of May as high network transaction fees contributed to miners’ profitability.
Why is this important: Of the $ 2.5 billion that Ethereum miners generated in revenue, $ 1.03 billion alone came from transaction fees. By comparison, Bitcoin miners only earned $ 123 million in transaction fees and over $ 1 billion in “global reward” grants.
However, the profitability of Ethereum miners could be short-lived given the network updates expected in the coming months.
With EIP-1559, a proposal that would essentially burn ETH transaction fees instead of giving them to miners, Ethereum miners might no longer be entitled to those record monthly earnings that exceed Bitcoin.
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In fact, after Ethereum’s next upgrade to a Proof of Stake (PoS) network, the need for Ethereum miners would be eliminated entirely.
The “London Hard Fork” will introduce the first stages of these elements to the Ethereum network and is expected to take place in July.
Price action: Ethereum was trading at $ 2,744 at the time of writing, having gained 8% in the past 24 hours.
The second largest cryptocurrency by market cap recorded a trading volume of $ 26 billion and accounted for 18.83% of the market.