According to data being tracked by major Ethereum mining pool Sparkpool, miner‘s realized daily income has skyrocketed by over 60% compared to last month’s income. This surge in miner profitability blew past Ether’s price rally within the same period.
Following the weekend rally which brought Ether price to a new yearly high of $333 and the increase in the Ethereum network activities, miners are witnessing an unprecedented upturn in daily income.
The unwavering interest in DeFi products is the chief catalyst responsible for the increase in network activities as the total amount of Ether locked in the protocol recently reached an all-time high of 4.1 million Ether. This represents 3.7% of Ether‘s supply, currently valued at $1.33 billion as at the time of writing.
The increase in Ethereum network activities resulted in a congested network and longer confirmation, unusually impacting gas fees and leading to a two year high in the amount paid in the transaction fees to miners.
Ether’s Miner Profitability Has Also Outpaced That Of Bitcoin Miners
Data obtained from Sparkpool shows that the daily income of Ethereum miners as of June 27 was valued at $1.85 per 100 megahashes second (MH/s). Within a month, this value has jumped by over 60% reaching a high of $3.27 briefly before dropping to $3, the highest mining revenue recorded this year so far.
Currently, a typical Ethereum mining equipment such as InnoSilicon’s A10 Pro with a computing power of 485 megahashes per second (MH/s) can generate $12.92 in daily revenue at Ether’s current price and mining difficulty. Accounting for electricity cost of $0.03 per kilowatt-hour (kWh), a net profit of $12 will be realized.
This profit outpaced the current mining reward on the Bitcoin network by almost 100%. Although the Bitcoin (BTC) price recently braced the $11k mark, miner’s profitability on the Bitcoin’s network is still valued at $6.50 which is far below what is currently being realized by Ethereum Miners.
The Launch of Ethereum 2.0 Is Also Fueling Interest In Ether’s Price Surge
Last week, the developers of Ethereum 2.0 announced the ‘Final’ testnet before main network launch. The event will be coinciding with Ethereum’s 5th anniversary. With Ether being the highest gainer in the top 10 assets by market cap for July, the upcoming event is undeniably fueling the FOMO in Ether price and the increase in network activities.
As the testnet launch draws closer, the asset could be poised for more price action which may further lead to a whole new level in miner profitability.