[ad_1]
Ongoing activities on the Ethereum network have contributed to the asset witnessing a short-term rally. The rally alongside the planned network upgrade has led to miners earning significant rewards in a short period.
Data acquired by cryptocurrency trading simulator Crypto Parrot indicate that the top five Ethereum mining pools cumulatively earned 77,450 ETH in rewards or $192.69 million over the seven days between July 27 and August 2. Over the same period, the miners using the pools mined a total of 29,021 blocks.
Ethereum is experiencing a substantial rally following its latest upgrade, designed to make the cryptocurrency more environmentally friendly. The price of ETH has surged by more than 50% since the third week of July. Many pundits are now toting ETH as the next Bitcoin and potentially likely to exceed BTC in value next year.
The Ethermine pool recorded the highest rewards at 28,239 ETH, mining 10,615 blocks, followed by Spark Pool with 23,276 ETH in rewards from 8,684 blocks. F2Pool Old ranks third with 11,914 ETH in rewards from 4,443 blocks, while Hiveon Pool had the fourth-highest rewards at 7,609 ETH from 2,876 blocks. Elsewhere, BeePool recorded the fifth-highest rewards at 6,412.
Network upgrade and sustained impact Ethereum mining rewards
The mining rewards follow a general cryptocurrency market correction that also impacted Ethereum. However, the second-ranked cryptocurrency is witnessing a resurgence.
The report highlights how the price movement and network activity likely impacted the mining rewards. According to the research report:
“The extended Ethereum rally follows anticipation of the London hard fork, slated to go live on August 5. ETH mining rewards consist of transaction fees and block subsidy payouts to miners. The mining rewards are currently picking up after the fees plunged to a six-month low in June amid the general cryptocurrency market correction.”
The Ethereum network has witnessed increased utilization, especially in sectors like DeFi and NFT, sparking an interest in ETH. In this case, miners are in a better position to reap more amid the interest.
However, the mining rewards will potentially plunge after the network shifts to the Proof of Stake protocol under the ETH 2.0 upgrade.
What is the ETH 2.0 upgrade?
The London hard fork, which took place last week, is being hailed as the single biggest upgrade to the Ethereum network since 2015. It has major implications for fees charged on the network, also called ‘gas fees’.
The new fork is intended to make the Ethereum network far more environmentally friendly, potentially as much as 99%. It has addressed a major concern many investors have had with Bitcoin, which has started guzzling too much power at a time when the world is becoming more focused on climate change.
The upgrade replaces the network’s auction style fee market with an algorithm that is automatically setting the gas price. Other upgrades within the London hard fork focus on user experience, including reducing volatility with transaction fees, and preparing the network for the launch of Ethereum 2.0.
The upgrade also delays the so-called difficulty bomb that will make ETH mining actually more difficult. It will coincide with a transition away from an Ethereum proof of work model for miners.
Related
[ad_2]
