Should Ethereum Miners Worry About EIP-3554?

The imminent start of the Ethereum Improvement Protocol – 3554 (EIP-3554) with its bomb of difficulty makes proof-of-work (POW) mining obsolete.

This will make ether mining impossible and will force miners to update their systems. The real question, however, is: should people really be concerned? Given the impact of introducing EIP-1559, the answer to that may come as a surprise.

The Ethereum gas fee debate has burned

The total value of ethers burned is near the $ 1 billion mark. In fact, at press time, that mark is only $ 20 million away and could be reached today, given that the average daily amount of ether burned is around $ 24 million.

Total amount of ether burned so far | Source: The Block

It is now clear that the concern about EIP-1559 affecting miners is no longer an issue. Since the August 4th fee restructuring, miner’s income has grown exponentially, with a similar increase of 134%.

Despite the fee burning, transactions on the network alone managed to increase miners’ earnings to $ 106.51 million on September 10, slightly less than the ATH level on May 24.

Ethereum Miner Revenue Up 134% | Source: The Block

At the time of going to press, transaction fees account for nearly 80% of total miners’ revenue.

Why does miner’s income come mainly from transaction fees?

This is mainly due to consistent on-chain transactions, which have been stable above the 1.1 million mark for over 3 months. They remain regardless of whether the price goes up or down.

Over 1.1 million Ethereum transactions are made every day | Source: The Block

In fact, Ethereum’s hash rate hit an ATH of 715,000 GH / s yesterday due to the increased volume of transactions and the increasing number of miners. Daily gas consumption is moving in a similar movement, reaching over 100 billion Gwei since August and an ATH of 101 billion on September 5th.

Ethereum hash rate hits ATH | Source: Etherescan

The largest contribution to gas consumption is made by OpenSea, which consumed 36.35 thousand gas last month. The explosion of the NFT and the associated hype has led to this.

The total value of NFTs sold last month was $ 3.4 billion and is currently $ 1.5 billion this month.

OpenSea is the largest gas consumer on the Ethereum network | Source: The Block

Concerns about EIP-1559 have been proven incorrect, so the same should not be assumed for EIP-3554. All reviews must wait until December and one month after they were created.

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According to AMBCrypto

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