ETH miners may not be too happy with the current state of their investments to validate transactions in the market’s leading cryptocurrency focused on smart contracts.
ETH miners losing more money
This is because, in addition to the ETH price having fallen by more than 30%, the fees paid to transact on the network have decreased.
These two factors together have caused a drastic reduction in the income of ETH miners.
According to Glassnode, the percentage of profits an ETH miner receives from fees has dropped to 34.25%, one of its lowest levels for the year.
Meanwhile, Etherscan data shows that, at the beginning of the year, sending a transaction using ETH cost around $14. .
This situation has ETH miners apprehensive. After all, a further drop in the price of ETH could make the account deficit and force some less capitalized miners to shut down their machines.
Despite this, most miners do not intend to turn off their equipment, even at a loss, in view of the ever-closer change in the ETH transaction validation system.
The current validation system based on Proof-of-work (PoW) will turn to Proof-of-Stake (PoS). With this, the current mining will no longer work, making the machines and equipment obsolete for this function.
According to expert Alfredo Oquendo, the fight between ETH miners is healthy and, contrary to showing a weakening in the network, it shows the strength of the blockchain:
“It is difficult to strike a balance in the cost of mining commissions and rewards that is attractive to users and miners. However, at times when the balance has tipped in favor of either of these two sides, the network has not stopped,” he said.