Ethereum Outperforms Bitcoin in Miner Revenue Amid High Transaction Fees

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In recent months, Ethereum has consistently outpaced Bitcoin in miner revenue, marking a significant shift in the cryptocurrency mining landscape. While both networks rely on proof-of-work (as of the time of this writing), Ethereum's robust ecosystem and surge in transaction activity have made it more profitable for miners—despite rising network congestion and user costs.

According to data compiled by analytics firm Glassnode, Ethereum miners earned a record 95,000 ETH in fees during early May 2025. This milestone underscores Ethereum’s growing dominance in mining profitability compared to Bitcoin, even as both networks face market volatility and evolving user demands.

👉 Discover how blockchain networks reward miners and what drives profitability in 2025.

Why Ethereum Is More Profitable for Miners

The primary driver behind Ethereum's superior miner income is its high transaction fees, often referred to as "gas fees." These fees are paid by users to execute smart contracts, mint NFTs, trade on decentralized exchanges, or participate in yield farming.

A key event that spiked Ethereum’s transaction volume was the NFT minting event for Otherside, a metaverse project launched by Yuga Labs—the creators of Bored Ape Yacht Club (BAYC). The massive demand overwhelmed the network, causing gas prices to soar. At peak times, users paid hundreds of dollars just to mint a single NFT, significantly boosting miner revenues.

While such spikes are episodic, they highlight Ethereum’s unique advantage: network utility. Unlike Bitcoin, which primarily functions as digital gold or a store of value, Ethereum serves as a platform for decentralized applications (dApps), DeFi protocols, and NFT marketplaces—all of which generate continuous transaction activity.

This functional diversity translates into sustained fee income for miners, supplementing their block rewards and making Ethereum mining more lucrative over time—even when asset prices fluctuate.

Bitcoin Mining Revenue: A Declining Trend

In contrast, Bitcoin’s mining revenue has lagged behind. Over the past year leading up to April 2025, Bitcoin’s production efficiency dropped by 1.16%, reflecting increased competition and rising operational costs. In March 2025 alone, Bitcoin miners earned $1.39 billion**, while Ethereum miners pulled in **$1.74 billion, according to on-chain data from The Block Crypto.

What’s more telling is the composition of that revenue:

This disparity reveals a fundamental difference: Bitcoin remains largely a settlement layer, with fewer complex transactions, while Ethereum functions as an execution layer for a wide array of financial and digital asset interactions.

Even with a 17% monthly decline in miner revenue, Ethereum continued to outperform Bitcoin in profitability—a trend observed across multiple months in early 2025.

Monthly Comparison: Ethereum vs. Bitcoin Miner Earnings (Early 2025)

These figures demonstrate not only Ethereum’s current edge but also its resilience in maintaining higher yields despite market headwinds.

The Double-Edged Sword of High Gas Fees

While elevated transaction fees benefit miners, they come at a cost to end users. High gas prices can make small transactions economically unviable and slow down network performance during peak usage.

For example, during the Otherside NFT drop, many users faced failed transactions despite paying exorbitant fees—effectively losing money without receiving any service. This inefficiency highlights one of Ethereum’s ongoing challenges: scalability.

However, from a miner’s perspective, every transaction—successful or not—still incurs a fee. Failed transactions consume computational resources and must be validated, meaning miners still earn regardless of outcome. Thus, high network congestion often translates directly into higher profits for miners.

👉 Learn how network congestion impacts crypto transactions and miner earnings in real time.

Key Factors Influencing Mining Profitability

Mining revenue isn’t determined solely by transaction volume. Several interrelated factors shape profitability:

1. Asset Price Volatility

The market value of ETH and BTC plays a crucial role. Even if a miner receives the same number of coins per block, fluctuations in price affect their USD-denominated income. As of mid-May 2025:

Despite these drops, Ethereum’s fee-driven model provided a buffer against declining block rewards.

2. Block Rewards + Fees = Total Revenue

Total mining income = (crypto price) × (block reward + average fees per block).
Ethereum’s ability to generate consistent fee income helps stabilize miner revenue during bear markets.

3. Network Activity & Use Cases

Ethereum’s integration with DeFi, NFTs, gaming (play-to-earn), and DAOs ensures constant demand for transactions. Each interaction—whether swapping tokens or staking assets—requires gas fees.

Bitcoin, while secure and decentralized, lacks native support for smart contracts (without Layer-2 solutions), limiting its transactional depth.

Frequently Asked Questions (FAQ)

Why do Ethereum miners earn more than Bitcoin miners?

Ethereum miners earn more due to higher transaction fees generated by smart contracts, DeFi protocols, and NFT activity—use cases largely absent on the Bitcoin network.

Are high gas fees good for the Ethereum network?

They benefit miners but can hurt user experience. Long-term scalability solutions like Ethereum 2.0 aim to reduce fees while maintaining security.

Does Bitcoin generate significant income from transaction fees?

Currently, no. Over 93% of Bitcoin’s miner revenue comes from block subsidies; transaction fees contribute minimally unless the network is under heavy load.

Will Ethereum remain more profitable after transitioning to proof-of-stake?

After the full transition to proof-of-stake (post-EIP-3675), traditional mining will end. However, validators will still earn rewards from fees and staking yields—though distribution mechanisms will differ.

How do failed transactions affect miner revenue?

Miners still collect gas fees from failed transactions because computational work is performed regardless of success.

What events cause spikes in Ethereum transaction fees?

Major NFT mints (like Otherside), DeFi token launches, flash crashes, or arbitrage opportunities often trigger sudden surges in network usage and gas prices.

Core Keywords

As the crypto ecosystem evolves, Ethereum’s role as a functional platform continues to differentiate it from Bitcoin’s store-of-value narrative. For now, that distinction translates into tangible financial advantages for miners—driven by real-world usage rather than speculation alone.

👉 Stay ahead of mining trends and track real-time blockchain profitability metrics today.