March was better in terms of revenue for Ethereum miners in the crypto market. Ethereum miners generated $1.29 billion in revenue last month. However, this is much lower than the all-time high revenue for these miners in November last year. Most of the revenue in March came from block subsidies, while the share of transaction fees was less than $100 million.
According to data from The Block, revenue for Ethereum miners grew by about 7.2 percent in March compared to February. This is a good sign as their revenue has been declining since November. Miners operating on this second-largest blockchain network generated more than $2 billion in revenue in November. The increase in revenue is reflected in the outcome of EIP-1559, which came into force with the London upgrade last year. EIP-1559 splits the transaction fee. Base fees have been abolished and miners are only allowed to receive tips.
Ethereum has also started the process of moving away from proof-of-work. It will soon shift to the new proof-of-work process. However, this upgrade will not reduce transaction fees for decentralized finance (DeFi), non-fungible tokens (NFTs), and others on the Ethereum chain as it is only linked to the mechanism that secures the network.
Dogecoin, one of the popular crypto tokens, is undergoing a major overhaul of its system and will be helped by Vitalik Buterin, co-founder of Ethereum. Dogecoin is among the latest cryptocurrencies planning to shift to a more efficient Proof of Stake (PoS) mechanism. It allows cryptocurrency holders to stake coins and create their own validator nodes. Staking occurs when a user decides to stake his or her coin to verify the transaction.
Coins are locked when the user stakes them, but these coins can be un-shakeable if the user wishes to trade them. When a block of transactions is ready to be processed, CryptoKitties’ Proof-of-Stake protocol selects a validator node to review the block. The validator checks whether the transaction in the block is correct or not. The blocks are then added to the blockchain.