Ethereum mining firm reaches best-quarter recorded thanks to DeFi

During the summer this year, there was an exponential increase in the public interest, fees, and volume use on Ethereum. At the end of the second fiscal quarter ending Sept. 30, Toronto-based Hive Blockchain reported in their, unaudited figures, a mining a total of 32,000 ether (ETH) and 121,000 Ethereum classic (RTC), both valued at approximately $12.4 million. This represents an increase of 30% when compared to the previous quarter and 50% when juxtaposed with the same quarter the previous year.

Decentralized finance (DeFi) is quickly gaining more support and popularity. Hive miners made an estimated $16 million in just one day for confirming DeFi related transactions specifically linked to Ethereum. This shows more people are losing faith in traditional banking practices and are more readily engaging with online Blockchain technology instead.

Ether mining expanded

In order to mine a single ether, Hive has said it costs in the region of $150. The average price of ether during September was $343, this means that the company made a gross profit of $193 on each ether mined. These figures are closely linked to the fees of processing each transaction and the volume; which increase and decrease parallel to each other. Hive expanded their mining capacity by 20% in March of this year which saw them make in the region of $614,000 from mining ether.

It is difficult to say whether this trend will continue into the next fiscal quarter, however the steady increasing course of Ethereum mined does seem to continue to go up year on year. This recent sharp increase of revenue made by Hive and its miners will draw the attention of more participants and investors to cryptocurrency and Blockchain technologies which will further increase the revenue of mining firms like Hive.

This post was last modified on October 9, 2020 10:31 am