On Friday, Ethereum miner revenues soared to $3.74 million in one hour – the highest ever recorded earnings for the network.
Total miner revenue for the same day was over $55 million, another all time high for Ethereum.
With gas fees returning to exorbitant levels, and gas-heavy smart contract transactions becoming the norm – miners are earning never-seen-before profits for validating the network.
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TVL in DeFi accelerates
The rise in ETH network fees is largely due to an influx of new capital in decentralised financial products, now standing at $37 billion according to defipulse.
However, despite this news, Ethereum has soared to all time highs, hitting a record $1,830 in the early hours of Feb. 9th. The move marked a gain over over 10% and nearly 30% since the same time last week (2nd Feb).
Could EIP-1559 send Ethereum to $20,000?
As increasing fees are ultimately unsustainable for something that calls itself the future of finance, a proposal to alleviate the situation could bring fees dramatically lower if implemented.
In essence, EIP-1559 is a proposal to modify the current fee auction system so that everyone pays just the lowest bid that was included in the block. The fees would be dynamically adjusted depending on network load and demand, which would allow third-party protocols connected to it to automatically set lower and more accurate gas prices.
The proposal would also dynamically burn fees which would also have an effect on the ETH supply.
According to Predictions Global founder Ryan Berckmans, this would effectively give ETH back to holders rather than miners as the asset’s scarcity increases due to scarcity. Miners would also have less incentive to sell ETH to cover costs, giving the asset more room to grow.
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