For the third month in a row, the profitability of Ethereum mining exceeds the earnings of those who chose other cryptocurrencies. Even bitcoin mining has not become as profitable as ether. Despite the increase in the income of BTC miners in March, those who produce Ethereum earn about 10% more.
March was challenging in terms of mining the world’s first virtual currency created based on blockchain. Analysts at Be[In]Crypto Research assure that the total turnover of bitcoin miners for the third month of 2022 amounted to $1.21 billion. Relative to March 2021, the drop was almost 30%, then the industry generated about $ 1.75 billion.
Ethereum Continues to Outpace Bitcoin in Mining Profitability
Even though ETH was not the first cryptocurrency in the world, Ethereum mining in 2022 became a more profitable occupation than the production of BTC. Its miners managed to generate $1.34 billion in turnover against $1.21 billion for bitcoin. The reason lies in the changes in the value of tokens. You can see more https://travelingtourism.com/
The Ethereum exchange rate in March increased, on average, by 7% compared to February. In the second month of the year, ether miners generated only $1.25 billion.
Why did miners choose ether in March 2022?
As of April 2022, bitcoin is still the largest digital asset, its market capitalization is the largest. But, in truth, ether brings more profit to miners for the fourth month in a row. And generating bitcoins has ceased to be the most profitable. Here’s what the income difference looks like:
- December 2021 – 32% more profit from Ethereum miners than BTC miners;
- January 2022 – 20% more;
- February 2022 – 17% more;
- March – by 10%.
The main crowd of virtual coin producers is following the market. What is more profitable, they choose.
That influenced the increase in profitability of ether mining
Before dealing with growth factors, it is necessary to understand how profitability is considered. In the blockchain world, this is done as follows: the price of a coin is taken and multiplied by all tokens that have already been issued for a certain period. This amount reflects the total earnings of the industry.
When the market grows, mining revenues also increase. On the other hand, in times of recession, both the yield of the issue and the total price of virtual assets decrease.
In March 2022, the demand for both bitcoins and Ethereums increased. As of the first day of the month, the price of Ethereum was $2,920 per token. The maximum was reached on March 29 and amounted to $3,470. The month closed at $3,282, which allowed us to estimate the growth of ETH for the month at 18%.
The volume of ether trading relative to February increased by 4%: from $ 416 to $ 436 billion. This indicator affects the exchange rate, which increases with an increase in demand.
The bitcoin exchange rate at the beginning of March was at $43,195, the monthly maximum was $48,022. The bitcoin price on March 31 was set at $45,569 per token. The growth relative to the beginning of the month was about 11%.
Bitcoin trading volume rose to $830 billion in March. In February, it was at the level of $671 billion.
If we summarize the discussion of the reasons affecting the calculation of the profitability of miners, we can draw the following conclusion. A key factor in the increase in mining revenues in March 2022 was the rise in prices for digital assets. Since the Ethereum exchange rate has increased more in percentage terms than bitcoin quotes, the generation of ETH turned out to be more profitable than BTC mining.
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