Mining revenue was approximately $730 million for the month.
Ethereum mining revenue rose to a three-month high due to increased interest in mining rewards. This was the last full month of ETH mining before The Merge.
Ethereum mining has consistently provided monthly income to mining companies such as Marathon Digital Holdings, BitDigital, Bitfarms, Riot Blockchain Inc., Hut 8 Mining Corp, and Argo Blockchain.
The announcement of the transition to a Proof-of-Stake (PoS) network was first made on December 1, 2020. The transition was finally scheduled for this month, causing a surge in demand for ETH mining rewards. as they will be removed.
As a result, Ethereum mining revenue increased to approximately $734 million in August from $621 million recorded in July, as reported by The Block based on data from Coin Metrics. This was an 18% increase in revenue over 31 days.
Ethereum Miners Suffered a Bear Market
Following the collapse of the algorithmic stablecoin TerraUSD (UST) in the second week of May, Ethereum mining revenues were able to cross $1 billion despite the significant drop in its price during the month.
Less than $600 million was generated in June by contributing energy to validating transactions on the Ethereum Proof-of-Work (PoW) network.
Throughout June, ETH traded in the range of $896 to $1,965. In July, the asset behind the Ethereum ecosystem traded between $1,019 and $1,774.
Because mining revenue is calculated by the amount of ETH mined multiplied by the price of the coin in a given period, there was a substantial drop in revenue.
ETH Price and Merger Boosted Revenues
The process for the Fusion launch was announced by the Ethereum Foundation on August 24. The first step involves a network update called Bellatrix at the consensus layer that is scheduled for 11:34:47 AM. m. UTC on September 6. .
The second step, called Paris, is the transition part of the execution layer and is scheduled to activate between September 10 and 20.
The transition to a PoS network will see Ethereum join other networks like Cardano, which are trying to find the perfect balance for the Blockchain trilemma (security, decentralization, and scalability).
The anticipated reduction in gas fees and the increase in the use of decentralized protocols on Ethereum saw an increase in demand for ETH.
Within the period, ETH traded in the range of $1,428 and $2,023 after opening and closing at $1,681 and $1,554 respectively.
While miners will earn ETH rewards for a short period before the transition takes place, many miners have turned to other PoW coins such as Ethereum Classic (ETC) and the recently created Ethereum Proof-of-Work (ETHPOW), which can be traded on Gate.io, MEXC, Poloniex, and DigiFinex.
By Audy Castaneda
