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Are bullish Ethereum miners still unaffected by EIP-1559

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Ethereum had a successful October as it closed the month on the back of a 43% hike. A good October is always necessary for a good Q4 for any asset and investors right now seem to be pleased with their standing.

However, they are not alone as even miners seem to be enjoying the profits of October. And, the fear of EIP-1559 having a drastic effect on them is finally disappearing.

Ethereum miners’ new highs

Ethereum’s bullishness throughout October resulted in a good spike in trading and transaction volumes, as well as high inflows from investors. The accumulation trend was running hot and that led to a profitable month for Ethereum miners as well.

Even though throughout October less than 600 new miner addresses joined the network, the consistency by previous miners led to the hash Rate marking a new all-time high every day. As long as there isn’t any sudden change, the hash rate will hopefully continue to rise this way.

Ethereum miners addresses | Source: Glassnode – AMBCrypto

The good thing as a result of investors’ bullish actions is that the total fees paid to miners touched a 5-month high of 16,317 ETH. The miners’ revenue from fees alone represented well over 54.1% of their total revenue.

Ethereum miners revenue from fees | Source: Glassnode – AMBCrypto

What’s more, looking at investors’ profitability, miners are also taking absolute advantage of this bullishness and refraining from even selling into strength, just like investors have.

Thus, their overall reserves throughout October have risen by 23k ETH. And, looks like they are going to keep up with that.

Ethereum miners reserves | Source: Intotheblock – AMBCrypto

What has been the impact of EIP-1559?

Here, the interesting part is that even the fee burn mechanism of EIP-1559 has had little to no impact on miners. Even though their revenue did take a hit after its implementation, recent market trends have led to the maximum of their earnings coming from base fees.

Also, more than 727k ETH has been burnt since August, but it only represents 0.61% of all circulation. This proves that EIP-1559 has not and will not be a problem for miners or investors in the future either.

EIP-1559 stats | Source: WatchTheBurn


Aaryamann is a freelance crypto journalist working with AMBCrypto. He is currently investing his time in the crypto-space. He has a keen interest in DeFi, the ever-expanding possibilities of blockchain technology, as well as the political impact they would have.
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