New data reveals that in the positive month of March for Ether’s recovery in the crypto market, Ethereum miners managed to raise a total of $1.29 billion (approximately 9,740 crore from rupees) of income over the last month. Although this is still far from the all-time high recorded in November last year, it bodes well for miners who have suffered a difficult few months during the winter period. Almost all of the $1.29 billion (about Rs 9,740 crore) came from block grants, while less than $100 million (about Rs 755 crore) came from transaction fees.
According to data from The Block, the total monthly revenue made by Ethereum miners increased by around 7.2% from February to March 2022. More importantly, this signifies a break in a downward trend that began in November 2021. At this point, miners operating on the second largest blockchain network have made over $2 billion (about Rs 15,100 crore) in revenue, but the numbers have started to drop over the past few years. following months.
Much of the increase in miner revenue appears to be a consequence of EIP-1559 which came into effect with the London upgrade in August 2021 last year. The EIP-1559 upgrade resulted in a major overhaul of how transaction fees were estimated. EIP-1559 has split transaction fees, with the base fee now being destroyed while allowing miners to only receive tips.
Ethereum, for its part, is also moving away from proof-of-work mining altogether, as it prepares for the “merger.” In mid-2022, it will transition to a new proof-of-stake validation process. That said, this upgrade will not reduce transaction costs on the Ethereum blockchain for decentralized finance (DeFi), non-fungible token (NFT), and others, as it is only tied to the consensus mechanism securing the network. The merger paves the way for the future upgrade to sharing, which will reduce gas charges.
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