Although Bitcoin miners’ revenue increased in March, Ethereum miners still have 10% more revenue than miners of the first blockchain-backed cryptocurrency.
March proved to be a busy month for bitcoin miners. According to Be[In]Crypto Research miners were able to generate approximately $1.21 billion in revenue in the third month of 2022.
Inasmuch as this number seems low when looking at the demand for bitcoin, total mining revenue for bitcoin has increased since February 2022. Total revenue for March increased 14% to about $150 million.
Overall Bitcoin mining profitability over the past year has fallen by 30% since March 2021, when it recorded $1.75 billion in revenue.
Source: YCharts
Although bitcoin mining revenue increased in March, the daily high for March 2022 revenue was still 4% below the best daily high in February. According to YCharts data, the daily high in February was $50.05 million.
Against this backdrop, the daily high for March ($47.54 million) was more than 20% lower than the January 2022 high of $60.16 million.
Ethereum continues to outperform Bitcoin mining
While Bitcoin miners generated $1.21 billion in revenue in March, Ethereum miners generated $1.34 billion. Following Bitcoin’s pattern, Ethereum’s earnings increased by 7% from February.
In February 2022, Ethereum mining brought in total revenue of $1.25 billion. Ethereum mining also saw a monthly year-on-year decline in March. It generated $1.41 billion in revenue in March 2021, while the number fell by 4% in 2022.
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Miners still prefer Ethereum in March 2022
As of April 2022, Bitcoin is still the largest digital asset by market cap. However, when it comes to mining revenue, Ethereum is the only asset that brings miners more revenue.
Before Ethereum surpassed Bitcoin in March 2022, Ethereum’s earnings surpassed Bitcoin by 17% in February 2022. Additionally, mining revenues for Ethereum surpassed Bitcoin by 20% in January 2022, 32% in December 2021 and 65% in May 2021.
What Caused the Increase in Mining Revenue?
In order to understand the increase in mining earnings, we should understand the factors that help in calculating mining earnings. To calculate mining earnings, we need to consider the price of a coin and the number of coins (ETH and BTC in this case) earned in March.
Typically, in a bullish market, mining revenue increases as coin prices skyrocket. On the other hand, when crypto market sentiment is negative, mining revenues decrease along with asset price.
A market rebound towards the end of March, fueled by rising demand for Bitcoin and Ethereum, can be seen as the main factor behind the increase in mining revenue in March.
Ethereum opened on March 1st with a trading price of $2,919.78. The Ethereum ecosystem’s native asset hit a monthly high of $3,470.19 on March 29 and closed the month with a hand swap at $3,281.64. Overall, ETH surged about 18%.
Added to this was a 4% increase in trading volume in February. Trading volume for February was around $416 billion, while volume for March was around $436 billion. This helps explain the surge in ETH price in the last few days of March 2022.
Source: CoinMarketCap
Bitcoin started trading at $43,194.50 on March 1st. BTC hit a monthly high of $48,022.29 and ended March 31 trading at $45,538.68 – an 11% increase.
Bitcoin trading volume increased even further in March. After plummeting 27% from $923 billion in January ($671 billion), bitcoin volume rose 23% from February to a trading volume of $830 billion in March.
Source: CoinMarketCap
From the factors used in the mining revenue calculation, we can conclude that the main factor behind the increase in mining revenue in March 2022 was due to rising digital asset prices.
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