Ethereum Miner Fees Beats August Record with a 47% Increase in September
The final quarter of 2020 is here after seeing the tectonic shifts over the last few months, such as the rise of the DeFi and capital flow from the crypto sector to this burgeoning one, specifically into DEX venues and yield farming offerings.
And of course, Ethereum is at the center of it all.
The second-largest cryptocurrency network ended the quarter at 60% returns, much higher than Bitcoin’s mere 18%. However, September wasn’t good for the crypto market, which saw Ether also declining by 18%.
At the time of writing, ETH has been trading around $365, up 2.25%, and over half a billion dollars in ‘real’ trading volume.
But what has been more interesting was the effect of DeFi’s capital flow on Ethereum’s fees.
According to the data published by Glassnode, Ethereum miners made a total of $166 million from transaction fees in last month — a new all-time high.
September’s miner fees have been an increase of 47% from the previous high in August.
Compared to Bitcoin, whose miners made $26 million from fees, Ethereum’s has been over 6x of it.
While the revenue from fees has been filling the pocket of Ethereum miners, it has made it all a big players’ game, shutting out the smaller ones.
However, it did put the layer 2 solutions in the limelight that is being actively used by popular DeFi projects. Ethereum co-founder Vitalik Buterin, an advocate for these solutions, recently said they make the main network a good choice for payments.
More people should support ethereum for payments. The nice thing about supporting ethereum is that you're not just accepting ETH, you also get support for MKR, UNI, WBTC, and every stablecoin for free. And there's already like three working layer-2 scaling solutions on mainnet. https://t.co/EdD7J8isk8
— vitalik.eth (@VitalikButerin) October 1, 2020
The bullish thesis for Ethereum also involves the recent launch of “Spadina,” the final testnet ahead of the blockchain upgraded ETH 2.0 mainnet release. This testnet is to run for three days as a “dress rehearsal” after the Medalla testnet went live last month. Spadina is to run alongside Medalla and test deposits and genesis block.
Scheduled to go live on Sept. 30, Spadina ran into problems yesterday. It suffered from “a lack of finality at launch,” as per Prysm Labs, which has been because of very few Prysm nodes participating, leading to community confusion. Other issues included users sending invalid deposits and “overall loss of confidence in becoming an eth2 validator.”
But this could be all fixed easily with a release, and everyone has to try again. ETH 2.0 testnet is now scheduled for another dress rehearsal called Zinken, next week.
For this to be successful, the developer Danny Ryan said everyone needs to take the genesis seriously.