With Ethereum transaction fees soaring, the daily profit that can be achieved by miners on the network is now at its highest point in 27 months.
- Data from BitInfoCharts shows the daily profitability for Ethereum miner operators is at $5.8 per 100 megahashes second (MH/s) of computing power – a level not seen since early May 2018.
- The increasing profitability is a result of the recent price rise of the ether (ETH) cryptocurrency and a surge in transaction fees brought on by increasing levels of decentralized finance (DeFi) activities on Ethereum.
- As a result, most of Ethereum mining equipment is now able to operate with a profit margin above 90% even at an electricity cost of $0.05 per kilowatt-hour.
- Some more state-of-art equipment can mine with a profit margin of as high as 97%, according to data tracked by mining pool F2Pool.
- In July alone, the profitability metric soared by over 60%, as reported by CoinDesk.
- At the time, ETH was changing hands at around $320 and daily mining profitability was about $3.27 per 100 MH/s.
- In the past two weeks, ETH prices have been closer to $400 per token.
- It's worth noting that data from Glassnode shows that the total daily revenue for Ethereum miners in dollar terms have not yet exceeded the level seen in May 2018.
- However, the total hash rate securing Ethereum on average is now around 200 petahashes per second (PH/s), while it was over 270 PH/s more than 2 years ago, network data shows.
- That means mining is now less competitive and the achievable profitability per 1 megahash power is higher, even though total mining revenue is not.
Read more: Decentralized Finance Frenzy Drives Ethereum Transaction Fees to All-Time Highs