Ethereum mining revenues fell by 27% in May

The ETH mining profit amounted to $1,01 billion

04.06.2022 - 06:35

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What’s new? Ethereum miners made 27,2% less revenue in May than the previous month, according to The Block Research. Their profit amounted to $1,01 billion. In April, cryptocurrency mining generated $1,39 billion in revenue.

Source: Theblockresearch.com

What were the profits made of? Most of the revenue came from the block reward ($888,95 million). A relatively small amount came from transaction fees — $80,46 million, while rewards for uncle blocks amounted to $41,2 million. The share of Ethereum transaction fees in total revenue decreased to around 5,6% in May.

What is an uncle-block? Uncle-blocks (or Ommer) appear when two or more miners create blocks almost simultaneously. Since only one block can be mined and accepted as canonical in the blockchain, the others then become uncle-blocks. They are not included in the original blockchain but reward their miners for their work.

What events happened before? An April report from the mining company Argo Blockchain showed that it had a profit of $100,1 million in 2021. This is an increase of 291% over the previous year. The company explained this result by a significant increase in hashrate, a temporary decrease in difficulty of mining bitcoin, and higher prices for the cryptocurrency.

In April, Ethereum mining revenue exceeded the same indicator of bitcoin by $170 million. Over the month, BTC miners earned $1,16 billion, down 4,3% from March. In contrast, Ethereum mining revenue rose 6,2% to $1,33 billion

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