Ethereum recorded a three-month high in mining revenue thanks to improved interest in mining rewards last month. August marked as the last full month of mining before The Merge.
The decision to switch to a proof-of-stake (PoS) network was originally announced on December 1, 2020. Finally scheduled for this month, the transition resulted in increased demand for mining rewards since they will be discarded to make way for staking interests following The Merge’s successful completion.
According to data from Coin Metrics, Ethereum mining revenue increased to around £639 million in August from £540 million in July. In just 31 days, the revenue increased by 18%.
Despite a sharp decrease in price over the course of the month, Ethereum mining revenue was nevertheless able to surpass £0.87 billion following the collapse of TerraUSD (UST) in May.
This continued throughout June, with the figure staying below £522 million for powering Ethereum proof-of-work (PoW) network’s transaction validation system.
ETH price ranged between £780 and £1,710 in June. The asset traded between £887 and £1,540 in July.
There was a significant decline in mining revenue because it is determined from the quantity of ETH mined multiplied by the coin’s price at a given time.
On August 24, the Ethereum Foundation released the two-step procedure for the Merge roll-out. On September 6, a network update known as Bellatrix on the consensus layer will take place as the first stage.
The transition’s second step, known as Paris, will be triggered between September 10 and September 20.
With the switch to a PoS network, Ethereum will join other blockchains like Cardano in the quest for the ideal solution to the blockchain trilemma of decentralisation, security, and scalability.
The demand for ETH increased as a result of the anticipated decrease in gas fees and rise in the adoption of decentralised protocols on Ethereum.
ETH stayed in the range of £1,240 and £1,760 during the timeframe under review, with opening and closing prices of £1,460 and £1,350, respectively.
Many miners have switched to other Proof-of-Work coins and the recently developed Ethereum Proof-of-Work (ETHPOW), even though they will still receive ETH rewards for a brief period of time before the transition occurs.