Ethereum miners' daily income surged 60% in July, far exceeding Bitcoin mining profits

Ethereum miners’ daily revenue surged more than 60% in July. The surge in Ethereum miners’ daily profits also outpaced Ethereum’s 40% price increase during the same period.

The increase in profitability has been helped by a surge in transaction fees on the Ethereum network and a relatively slow increase in competition from other miners.

On June 27, the daily revenue of Ethereum miners on the network was about $1.85 per 100 (MH/s). In the past month, especially in the last two weeks, this revenue has increased by 60%, reaching a peak of $3.27 (22 RMB) per 100 (MH/s) on July 25. The indicator has since fallen back to around $3.

During the same period, the price of Ethereum has increased by nearly 40%, rising from $229 on June 27 to $327 at the time of writing, its highest price in more than a year.

The hype around decentralized finance (DeFi) has caused a surge in Ethereum network activity, resulting in network transaction fees, which are part of miners’ daily income, reaching a two-year high.

Blockchain browser Etherscan shows that the total computing power of Ethereum, the world's second largest blockchain by market value, has remained stable at around 190 petahash per second.

In fact, data from Bitinfocharts shows that in the first quarter of this year, Ethereum's daily mining revenue was less than $2 per 100 MH/s, and fell to $1 per 100 MH/s after the crypto market crash on March 12. In the past few months, Ethereum's daily mining revenue has tripled.

Currently, some of the most advanced Ethereum mining equipment, such as the Innosilicon A10 Pro with a computing power of 500 megahash/second (MH/s) and a power consumption ratio of 1.9w/m, can generate daily income of US$13 (RMB 100) at the current price and mining difficulty of Ethereum.

According to data on the profitability level of mining machines, the daily electricity consumption cost of an A10 Pro Ethereum mining machine is RMB 8, and the daily net profit is nearly RMB 90.

This level of profit is nearly double that of some top bitcoin miners, even though the price of bitcoin broke through $10,000 over the weekend for the first time since early June. The sudden surge came after several weeks of low price volatility, fluctuating between $9,000 and $9,500.

However, Bitcoin mining difficulty remains at an all-time high, so even the most efficient Bitcoin miners, such as MicroBT’s WhatsMiner M30S++ and Bitmain’s AntMiner S19 Pro, can only generate daily revenue of $9 (63 RMB).

Based on the current price and difficulty of Bitcoin, a more efficient Bitcoin mining machine (within 40w/T power consumption ratio) can provide a net profit of approximately US$6.50 (45 yuan) per day.