In recent months, Ethereum mining has generated higher revenue for miners compared to Bitcoin mining. At the beginning of May, Ethereum miner earnings reached a record high of 95,000 ETH, according to data compiled by the analytics firm Glassnode. This confirms a continuing trend of Ethereum outperforming Bitcoin in terms of miner rewards.
The surge in transaction fees on the Ethereum blockchain is largely attributed to increased activity related to Yuga Labs, the creator of the Bored Ape Yacht Club (BAYC). The company conducted a large-scale NFT minting event for its Otherside metaverse project, which significantly drove up gas fees on the network.
Bitcoin’s Rewards Are Less Appealing
Over the past year, Bitcoin’s block reward issuance rate declined by approximately 1.16%, contributing to Ethereum’s multi-month lead in mining revenue. In April alone, Bitcoin miners earned $1.39 billion, while Ethereum miners garnered $1.56 billion according to data from The Block Crypto. Although Ethereum’s monthly earnings decreased by 17%, it still outperformed Bitcoin.
For three consecutive months—February, March, and April—Ethereum’s mining rewards exceeded Bitcoin’s by $0.26 billion, $0.19 billion, and $0.13 billion, respectively. April marked the second-largest monthly revenue gap this year.
Transaction Activity Drives Ethereum Miner Rewards
Ethereum’s utility-centric ecosystem allows it to offer more profitable returns to miners than Bitcoin. The key differentiator lies in the proportion of total miner revenue derived from transaction fees.
Thanks to its widespread use in decentralized finance (DeFi), play-to-earn gaming, and non-fungible tokens (NFTs), Ethereum generates significantly higher total transaction fees compared to Bitcoin. For instance, in April, Bitcoin’s revenue was dominated by block subsidies ($1.14 billion), with only $12.98 million coming from transaction fees. In contrast, Ethereum earned $82.88 million from fees alone.
However, this advantage comes with a downside.
While miners benefit from high rewards, users often face exorbitant gas fees and network congestion. Failed transactions can be particularly costly, as users still have to pay high fees even when their transactions do not go through.
Mining revenue is calculated by multiplying the asset’s price by the sum of block rewards and transaction fees per block. Therefore, the relative market prices of ETH and BTC also play a crucial role in determining miner profitability.
👉 Explore real-time mining revenue data
Market Performance of Bitcoin and Ethereum
Both major cryptocurrencies have experienced a downturn since the beginning of the month.
Bitcoin recently fell below $28,100 and is currently trading near its yearly low. As of this writing, BTC is valued at $28,030, reflecting a daily decline of 11.15% and a 29.25% drop over the past 28 days. This marks the first time in over two years that Bitcoin has broken below the $29,000 support level.
Ethereum has also struggled, losing its foothold above $2,000 for the first time since last July. Earlier, ETH hit a ten-month low of $1,748 before rebounding slightly. It is currently trading at $1,918, down 20.82% on the day and 34.44% over the past four weeks.
Frequently Asked Questions
Why is Ethereum generating more mining revenue than Bitcoin?
Ethereum’s mining revenue has surpassed Bitcoin’s due to higher transaction fees driven by network activity, especially in DeFi and NFTs. While Bitcoin relies heavily on block subsidies, Ethereum earns significant income from gas fees.
How do transaction fees affect miners?
Transaction fees are added to block rewards and distributed to miners. Higher fees mean higher revenue per block, making mining more profitable during periods of high network demand.
Can Ethereum maintain this advantage over Bitcoin?
Ethereum’s shift to Proof-of-Stake may change mining dynamics. However, until then, high utility and fee demand could allow Ethereum to continue leading in miner revenue.
What risks do miners face with fluctuating fees?
Miners benefit from high fees but are also exposed to cryptocurrency price volatility and network upgrades, which can affect long-term profitability.
How do gas fees impact Ethereum users?
High gas fees increase transaction costs, making small transfers uneconomical and sometimes leading to failed transactions that still incur charges.
Will lower crypto prices affect mining revenue?
Yes. Lower ETH or BTC prices reduce the dollar value of mining rewards, even if the amount of mined cryptocurrency remains the same.