This year, Ether miners made more money than Bitcoin miners. This is why:

At first glance, it appears that Bitcoin miners had a fruitful year in general. However, according to a new weekly update report from Arcane Research, another group of miners had a more profitable year.

The little miner with the big potential

Despite complaints about high gas fees, Ether miners earned more than $3 billion more than Bitcoin miners in 2021. According to Arcane Research's report,

“Ether miners have earned $17 billion in 2021, while the Bitcoin miners have earned $13.6 billion.”

What does this look like on a daily basis, we might wonder? While Bitcoin miners earned an average of $45 million per day, Ether miners earned $56 million. The report also stated that the volatility of Ether mining was greater than that of Bitcoin. Furthermore, Arcane Research attributed the Ether miners' profit to Ethereum's "abnormally high transaction fees."

Furthermore, the report revealed,

“Luckily for the ether miners, activity on Ethereum has been high the whole year and has increased lately, causing their revenues to skyrocket. Transaction fees on the Bitcoin network have stayed abnormally low since the middle of the summer. Because of this, fees only consist around 1% of Bitcoin mining revenues now, compared to 53% for ether miners.”

Imagining Ethereum

A lot of hopes are riding on the second-largest cryptocurrency by market cap, even as altcoins compete to be the next "Ethereum killer."

Messari researcher Ryan Watkins, for example, claimed that Ethereum was the "heart of the crypto economy."

Furthermore, Ethereum is becoming more active in the DeFi space, with a 1,000% increase in total value locked and a significant increase in total DEX volumes, stablecoin issuance, Bitcoin on Ethereum, and OpenSea sales.

However, for the past seven days, Ethereum has seen more Ether burned than mined. Gas prices must exceed 150 gwei to balance this out.

An analyst's viewpoint

Glassnode's lead on-chain analyst "Checkmate" was asked to comment on Ethereum's problem during the Crypto Conversation podcast. He stated,

“They try to do too many things at once…Unfortunately they’ve put stakeholders – people who already own the coin – and network users at odds. I think they’ve bit off more than they can chew and I think it’s going to come back to bite them.”


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