Ethereum miners made record revenue in the month of May.

This allowed them to earn more revenue from Bitcoin miners for the second time in the history of Ethereum mining.

Monthly mining revenue on the Ethereum blockchain reached $2.35 billion last May, according to statistics provided byCurrency Scales’, compared to $1.45 billion for Bitcoin.

In February, Ethereum mining revenue for the first time exceeded Bitcoin mining revenue, with Ethereum mining revenue reaching $1.37 billion while Bitcoin’s $1.36 billion.

Other than that, Bitcoin mining has had the upper hand and dominate the total revenue.

Proof of Work (mining) requires people to dedicate their computing power to help secure the network.

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Mining is the process by which new transactions are processed on the network and new digital currencies are created.

Mining revenue consists of two main components:

• Block rewards.
• Transaction fees.

Every time someone mines a block of transactions and adds it to the blockchain, they receive a set number of newly created cryptocurrencies.

In the case of Bitcoin, miners get 6.25 BTC ($227,000) every 10 minutes, for Ethereum, miners get two ETH ($5100) every 13 seconds or so.

They also receive transaction fees within that block.

What are the reasons why Ethereum mining revenue outperforms Bitcoin in May 2021?

The dominance of Ethereum in May is a byproduct of the price of Ethereum itself, with the price of Ethereum hitting a record high of $4,164 on May 10, as well as high transaction fees on the crowded Ethereum network.

The more crowded the Ethereum network becomes, and the more busy it becomes thanks to the boom in decentralized finance (DeFi) applications and non-fungible digital tokens (NFTs), the more competitive it becomes to pass the transaction.

Just over $1 billion in ETH mining revenue last month came from fees, compared to $130 million for Bitcoin.

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Ethereum transaction fees consistently outperform Bitcoin.

Two imminent events are set to change the Ethereum mining landscape, namely:

The inclusion of EIP-1559 in the July upgrade known as the London hard fork and the eventual transition to the Proof of Stake consensus.

“EIP-1559” is an Ethereum improvement proposal that will burn Ethereum transaction fees instead of giving them to miners.

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By reducing the amount of Ethereum in circulation, this move could increase the demand for Ethereum, thus increasing the dollar value of the block reward.

Proof of Stakes will kill the mining mechanism completely.

Essentially, the network will be secured by the process of people depositing Ethereum and keeping it in quota-enabled wallets, earning new rewards if they validate transaction blocks correctly, while losing parts of their stake if they don’t.

So, Ethereum miners should not get used to record earnings because they will soon be a thing of the past.

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