Ethereum miners earned more than $500K in transaction fees in one hour

The income of Ethereum miners was three times higher than the income of bitcoin miners. Buterin believes that a solution to the problem exists already – people need to use second-level protocols more often.

Miners on the Ethereum network have set a new record, earning more than half a million dollars from transaction fees in just one hour. Vitalik Buterin acknowledged the problem with the cost of transactions in the blockchain but said that the community itself was partly to blame for this.

While miners rejoice at fabulous profits – over the past year, transactions on the Ethereum network have risen in price by more than 700% – the rest of the community is concerned about the current situation with fees. Analyst at The Block portal Larry Cermak noted that in August, Ethereum miners earned $ 115.3 million for transaction processing – their income is almost three times higher than that of bitcoin miners, which received only $ 39.2 million over the same period of time.

Ethereum fees are inextricably linked to gas consumption – the computing power required to process transactions or implement a smart contract on the blockchain. According to GlassNode, gas consumption rose steadily over the year, bringing the average transaction processing fee to $ 6,632 on Aug 31.

Total gas used. Source: Glassnode

The increase in gas consumption is associated with the growing popularity of DeFi applications. On September 1, the volume of funds blocked in the blockchain for DeFi projects exceeded $ 9 billion. The popularity of such applications is also evidenced by the fact that the Uniswap decentralized exchange, which is currently one of the main consumers of gas on the Ethereum network, recently bypassed the Coinbase exchange in trading volume.

Ethereum co-founder Vitalik Buterin posted a message on his Twitter page urging charities to use ETH to receive donations. The specialist admitted that there is really a problem with commissions. However, according to Buterin, the community itself is partly to blame for this – the network participants do not use existing second-level protocols, which are aimed at scaling the blockchain.

That it is not the first time that Buterin supports second-level protocols. He previously stated that sidechains are tackling the scalability issue of the Ethereum network.

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