Ethereum is often criticized for a wide variety of reasons. Particularly the high network fees have created a lot of negative sentiment. As it turns out, the total fees paid – and miner revenue derived from it – is at a three-month low again. A sign of things to come?
Ethereum Total Fees Paid Hit a low
Throughout parts of 2020 – as well as other years – there has been a significant increase in Ethereum network fees. The amount of fees paid is often hitting high peaks, which isn’t necessarily a good thing. Higher fees mean users have to spend a lot more money to move ETH and ERC20 tokens around. Addressing this aspect has been challenging, and continues to spark debates among community members.
Looking at the current total fees paid chart for Ethereum, things are slowly improving. Thanks to an ongoing decrease in overall network costs, there is now a three-month low. On a daily basis, there is still 141.064 ETH in total fees paid. That is a more than respectable amount, but a vast improvement compared to 1,750 ETH in one day.
Just because a three-month low is hit, does not mean things will remain the same either. The previous low was recorded on July 18, after which the total fees paid started inching higher day by day. Eventually, they came down again to record this new three-month low. One can only hope things remain the same for some time to come.
All things considered, there isn’t less Ethereum-based network activity. DEXes and DeFi solutions remain popular as ever. There are also the gas guzzlers to take into account, which continue to generate a lot of fees around the clock.
Miners Note a Decrease in Income
Whereas the decrease in total fees paid is great news for Ethereum users, the miners aren’t too happy. More specifically, ETH miners receive a block reward plus their share of the transaction fees per block. If those fees decline, overall mining revenue will be affected negatively.
In fact, the Ethereum miner revenue from fees has dipped to a three-month low as well. It is normal to see these two charts overlap, as they are directly correlated. With just 0.197 in miner revenue from fees, things certainly look very different compared to a few months ago. It is also notable how this revenue has dipped sharply in recent days.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org