Despite the largest capitalization of Bitcoin, Ethereum mining requires less investment, and the return comes earlier. And even the status of Bitcoin as a “store of value” does not play into the hands of miners.

Bitcoin is compared by many to digital gold – this substitution in the preferences of investors was written in leading banking organizations, including Goldman Sachs and JPMorgan. The network is the most decentralized and secure, but it does not support smart contracts, and the speed (TPS) is limited to seven operations per second.

Because of this, the main income of miners is a reward for a block: now it is 6.25 BTC, and the share of the commission for transactions does not exceed 1%.

In Ethereum, the situation is reversed, where high demand for transactions leads to a significant increase in commissions. The network is not much faster than Bitcoin and is not able to process more than 20 TPS. This forces users to offer more “tips” to miners so that their transaction gets into the next block as soon as possible. Now the average commission is $13, but on May 4 it peaked at an unprecedented $ 6 thousand.

Such a surge was caused by the launch of the NFT collection from Yuga Labs, where each token provides access to a virtual piece of land in the new metaverse “Otherside”. Demand exceeded all expectations, and buyers inflated “tips” in order to have time to purchase one of 55 thousand tokens.

The collection was sold out in three hours.

Due to the hype, miners earned $ 231 million per day, which became a new historical record. The previous maximum was $117 million in May 2021.

Not without Elon Musk, who on May 4 changed the avatar on Twitter (NYSE:TWTR) to a collage of bored monkeys (Bored Ape Yacht Club or BAYC) from the same Yuga Labs. Moreover, he did it in violation of copyright, since he did not buy NFT and did not receive permission to use it. The author of the collage, Michael Buchanna, asked either to delete it or to buy it from the copyright holder.

With the heyday of the NFT markets and decentralized finance, Ethereum has become more profitable not only to mine, but also to hold. The ETH/BTC pair has been maintaining a steady upward trend for several years, which will be supported by the further expansion of virtual assets and the emergence of new metaverses.