Ethereum miners are making more money than pre-merger Bitcoin miners

Key facts:
  • The price movements of crypto assets have been marked by the performance of miners.

  • ETH is down 10% in two months, but BTC is down more than double that.

July was more profitable for Ethereum miners than for Bitcoin miners. If their income is measured in dollars, Ethereum has earned a total of $652 million, while their bitcoin peers have reached $597 million.

According to statistics published by the analytics firm Glassnode, The change in the profitability of Ethereum miners between June and July decreased by almost 10%. In June, they made a total of $725 million USD.

For its part, as reported by CriptoNoticias, Bitcoin miners made 16% less profit in July than in the previous month. His earnings increased from 667 million US dollars to 555 million US dollars.

Behind the differences between the two months, there is a number that repeats. In both June and July, Ethereum miners made more money of those of Bitcoin.

Overall, July was not the most productive month for cryptocurrency mining. Context has a lot to do with this, since Crypto assets obtained by offering the network processing power do not have the same market capitalization (measured in US dollars) as in previous months.

By analyzing the market capitalization of the cryptocurrencies of the two networks, ether (ETH) and bitcoin (BTC), this circumstance can be better understood. Bitcoin started in June and is hovering around $30,000 in its price, but Close July with a sale of around 20%, at $23,800.

Ether, for its part, has never seen such a sharp drop in its price. From around $1,900 at the beginning of June to $1,700 at the end of July, the drop is 10%, half of what Bitcoin has fallen over the same period. As can be seen, the two percentages largely coincide with the reported decline in miners’ earnings.

Earning Ethereum and Bitcoin miners
Ethereum miners (in green) have earned more than Bitcoin miners (in purple) in the last 30 days. Source: Glassnode.

Ethereum nears merger, miners weighing options

Ethereum 2.0, the new version of the network to be developed after the expected September merger, is working with Proof of Stake (proof of stake or PoS) as a consensus algorithm. This means that Ethereum will work without mining very soon.

In this scenario, earnings news is partially shifted, while many Ethereal miners analyze the network they have to move through to continue their activity.

One possibility is Ethereum Classic, as mentioned in previous posts on this broker. however, There is also the idea of ​​forking Ethereum and keeping the network working with Proof of Work (proof of work or PoW) to validate new blocks.

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