ETH recently soared to new all-time highs, with the coin’s mining pool revenue recording a new January high. 2021’s first month counted $800 million in revenue, beating the previous January 2018 record that stood at $762 million.
Over $311 million of the January 2021 mining revenue came from transaction dues on the ETH network; the value clocked almost 40% of the total mining revenue in the month. Miners’ returns per megahash second(MH/s) of computing energy has also eclipsed early 2018’s rate.
The upsurge boosted the value of ETH over the past few months, seeing the crypto reach the $1400 mark. According to transaction volume tracker Ycharts, the number of Ethereum transactions was 1.245 million on January’s last day; the number stood at 545,761 transactions one year ago.
Ethereum’s Successful Spell
The digital asset has had a successive trend over the past few months. In early 2020, Ethereum was valued at about $188. At the time of writing, the digital asset stood at $1,329, almost 600% more than the value recorded last year.
Several crypto analysts suggest that the price rise at the end of last year has led to an increase in transactional revenue compared to the two years back. Thus, the start of 2021 has seen more ETH mining and transactions on the network.
The profitability is also increasing due to the recent DeFi investment activities on the Ethereum network. According to bitinfocharts.com, the average transaction fee in January stood at $11.5, and the average number of transactions was 53,817
Ethereum miners achieved a 90% profit despite using equipment operating at the cost of $0.05 KW/h.
ETH Miners’ Struggle
Cryptocurrency miners have been calling for mining GPUs’ production, with most of the computerized assets being created for gamers. GPU developers like Nvidia have refocused their supplies to the gaming sector, neglecting crypto miners. Some of the known Ethereum mining GPUs include Nvidia’s RTX 3080 and AMD Radeon RX 480.
In 2018, there was a steep rise in graphic cards’ value after Ethereum miners dived in the assets to boost their mining activities. The miners were buying graphic cards in bulk to build GPUs that could mine several cryptocurrencies, including Bitcoin. Some cards like the Nvidia GeForce GTX 1070 were sold at double the price during these times.
Gamers felt undervalued since the supply was too low for them to compete with cryptocurrency miners. The GPU makers saw the market get out of hand and decided to direct their market focus to the gaming fraternity. Although there looks to be massive profits for ETH miners on the Ether network, finding mining GPUs proves to be a rugged mountain to climb.