The year 2020 has been, without any doubt, the year of decentralized finance (DeFi). And, in just a few months the DeFi managed to increase its value exponentially, attracting the attention of investors from all over the world. Being one of the big winners of this boom, the cryptocurrency Ethereum. Thus, today it has been revealed that Ethereum miners earned 450,000 ETH during the DeFi boom.
The rise and fall of decentralized finance
Although it had been advertised for many years, the truth is that nobody expected the rise of DeFi. And it is that, practically overnight, decentralized finance protocols went from being a marginal sector of the crypto world. Which the main actors normally ignored. To be the center of a true fever, which attracted thousands of people to this sector.
Thus, within a few weeks, the most important DeFi protocols multiplied their price several times. With Chainlink leading this process, going from $ 1.77 per LINK to a peak of $ 18.81 in just 5 months. Generating multi-million dollar earnings for its investors.
A process that also involved newer DeFi projects like yearn.finance, whose YFI coin went in weeks from costing $ 0 to $ 41,273. Enriching those who participated in the protocol from the beginning. And being the case, in addition, the main motivation for hundreds of crypto users to turn to DeFi.
However, the DeFi fever seems to be coming to an end. After most decentralized finance protocols lost much of their value during the month of September. As the speculative wave that drove them at first lost its force.
Ethereum miners’ earnings
Although the DeFi boom seems to be coming to an end, not only those who invested in this protocol made huge profits. Rather, in fact, Ethereum miners could have been the main beneficiaries of the rise in decentralized finance.
And, most of the DeFi protocols are located on the Ethereum Blockchain. Therefore, during the rise of decentralized finance, when users in this sector made thousands of transactions per day, the activity in the ETH chain increased significantly. Increasing with it the commissions paid to Ethereum miners.
Thus, the earnings of Ethereum miners from commissions reached 450,089 ETH only during the month of September, the last of the DeFi boom. Which is equivalent to 169 million dollars with the current price of ETH. By comparison, Bitcoin miners only made $ 29 million during the same month. Showing the extent to which the DeFi boom generated multi-million dollar profits for Ethereum users.