During the last weeks, the Ethereum market has been a protagonist in the crypto world. And it is that, as decentralized finance attracts more and more capital, a good part of these investments end up in the Ethereum Blockchain, specialized in the creation of smart contracts. Thanks to this, those who participate in the cryptocurrency network are going through a period of high profits. Making it known that Ethereum mining generates $ 800,000 per hour in commissions alone.
Decentralized finance and Ethereum
Since the birth of Ethereum, the cryptocurrency Blockchain was designed with the aim of allowing the greatest number of decentralized projects for its users. Thus, instead of seeking to be a replacement for fiat money like Bitcoin. The Ethereum chain enables the creation of decentralized applications and smart contracts by users of the crypto community.
Thanks to this, the Ethereum chain has been widely used by decentralized finance projects. Which take advantage of this ability of the ETH network to design their own tokens and smart contracts, without the need to give birth to a Blockchain from scratch. Being much more efficient to simply use the ETH platform by paying a commission.
Therefore, during these months when there has been a boom in the DeFi market with an exponential increase in its capitalization. It is normal that the demand for Ethereum also increases, a currency used in a large part of DeFi transactions. Especially for the payment of commissions for the use of your network by these DeFi projects. This being the main source of income from Ethereum mining today.
Commissions in ETH mining
And, the increase in demand for Ethereum has logically led to an increase in transactions carried out with the cryptocurrency. What has driven the increase in commissions within its Blockchain. To the point where tens of dollars in ETH can be paid to make a transaction using virtual currency.
Thanks to this, Ethereum mining has now become a very profitable business. Generating $ 800,000 every hour solely from commissions for miners, according to Glassnode. Reaching the incredible figure of 16.5 million dollars a day just for commissions for mining Ethereum. Compared to the 1.5 million generated in commissions within the Bitcoin Blockchain. This without counting the profits generated by the mining of ETH tokens.
This situation has already generated problems for users and companies. With exchanges reporting losses of between $ 10 and $ 20 for each withdrawal of Ethereum from their platforms. Showing with this the limitations of cryptocurrencies when the scalability problem in them has not been solved.