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Proof of Profits: Ethereum mining generates a better return on investment than Bitcoin



Proof of Profits: Ethereum mining generates a better return on investment than Bitcoin


Data suggests that Ethereum mining has consistently provided a better ROI than Bitcoin since early 2021.

Ethereum mining has been more profitable than Bitcoin mining

According to the latest weekly report from Arcane Research, ETH mining revenue has outperformed BTC over the past year.

The relevant metric here is “daily miner revenue”, which measures the total amount of revenue miners have earned on a given day.

In the case of Bitcoin, the block subsidy of 6.25 BTC per block has been the main contributor to mining revenue for some time.

Transaction fees have been quite low since the summer of last year, accounting for just 1% of BTC miner revenue.

For Ethereum, by contrast, transaction fees make up a large portion of miners’ revenue. This, however, means that your income can vary wildly from day to day.

In fact, the transaction fees depend on the strength of the demand on the network, which is certainly not stable.

Related Reading | Ethereum supply locked in a staking contract passes the 10% milestone

For example, last Sunday, ETH transaction fees hovered around $231 million, well above the 2022 average of $27 million.

Now, here is a chart showing how Bitcoin and Ethereum mining revenue compared since the beginning of 2022:

It seems that ETH miners enjoyed a higher amount of income during the period | Source: Arcane Research Weekly Update – Week 17, 2022

As you can see from the chart above, Ethereum miners have been consistently generating more revenue than Bitcoin miners for quite some time now.

However, aside from the more volatile earnings, there is another major downside to mining ETH. It is the fact that the crypto is planning to go to proof of stake in the third quarter of this year.

Related Reading | This indicator indicates that Bitcoin has not yet bottomed out in the bear market

Once the transition is complete, Ethereum miners will no longer have any use on the network, so they may need to switch to mine another coin.

On the other hand, Bitcoin mining has a less uncertain future as the network will be running proof-of-work for the foreseeable future.

ETH Price

At the time of writing, the price of Ethereum is hovering around $2,800, down 1% over the past seven days. Over the last month, the cryptocurrency has lost 18% in value.

The chart below shows the price trend of the coin in the last five days.

It seems that the price of ETH has been consolidating sideways for the past few days | Source: ETHUSD on TradingView

Bitcoin and Ethereum have been in the doldrums for some time, and at this point it is unclear when the cryptocurrencies might see real price action.

Featured Image from Unsplash.com, Charts from TradingView.com, Arcane Research

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