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Bitcoin and Ethereum miners rake it in as NFT mania burns ETH

2021.09.05 Adam James

The implementation of EIP-1559 did little to hamstring Ethereum miners in August, which saw a month-over-month revenue increase of roughly 60%.

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As summer starts coming to an end, families return from holidays and schools open for a new year, the cryptocurrency market continues to push forward. Topping headlines this week is the news that Twitter may be testing Bitcoin and Ethereum tipping services, while miners on both networks saw strong revenues in August.

Here’s everything you need to know about these stories, and more, in this week’s edition of OKEx Insights’ News of the Week.

Twitter allegedly testing Bitcoin and Ethereum tipping

Twitter is apparently testing the addition of Bitcoin and Ethereum to its Tip Jar service, per screenshots posted by Alessandro Paluzzi. The mobile developer claims to have reverse-engineered the social media behemoth’s tipping feature, through which the discovery was made.

The news has not been confirmed by Twitter, as of the time of this writing.

Key takeaways

  • Though currently unconfirmed, Paluzzi’s discovery would be in line with Twitter CEO Jack Dorsey’s previous hints that Bitcoin would eventually be integrated into the service.
  • As anticipated, the service will apparently utilize Strike, a Lightning Network application. However, users apparently won’t need to link a Strike account to their profiles.

Fractionalized Doge NFT hits $225 million valuation

The implied valuation of the original Doge meme as a nonfungible token reached over $225 million this week after the owner, PleasrDAO, tokenized 16,969,696,969 shares of the NFT and auctioned 20% on decentralized exchange SushiSwap. The auction raised roughly $45 million from nearly 1,800 buyers.

Key takeaways

  • The fractionalization of NFTs has emerged as a popular trend in the sector, as they provide virtually anyone with the ability to gain exposure to expensive NFTs. However, the implied valuations of said fractionalized NFTs have also skyrocketed to potentially unsustainable levels.
  • Fractional.art, which was used to tokenize the Doge NFT, recently raised $7.9 million in seed funding.

Bitcoin and Ethereum mining revenue increased in August

Bitcoin mining revenue has bounced back after a high-profile exodus of cryptocurrency miners from China. In August, Bitcoin miners raked in roughly $1.41 billion — a month-over-month increase of nearly 45%.

Meanwhile, Ethereum miners have survived the somewhat-contentious implementation of EIP-1559 — which sees much of the transaction fees burned, as opposed to awarded to miners — in the London mainnet upgrade. Ethereum miners saw a month-over-month revenue increase of 60%.

Key takeaways

  • Despite Ethereum mining revenue approaching previous all-time highs, transaction fees accounted for very little of the overall income.
  • Driving Ethereum mining revenue is the NFT market, which is currently surging and smashing various records for monthly volume, sale prices, etc.
Bitcoin mining revenue saw a strong recovery in August. Source: The Block Research

Arbitrum mainnet launches, raises $120 in Series B funding

Arbitrum developer Offchain Labs launched the Ethereum scaling solution’s mainnet this week. It also raised an additional $120 million in a Series B round that featured Lightspeed Venture Partners, Polychain Capital, Pantera Capital, Alameda Research, Mark Cuban and others.

Key takeaways

  • Before the mainnet launch, only developers could use Arbitrum. Now, anyone is able to use decentralized applications built on the scaling solution — which purports to scale Ethereum through the ability to handle more transactions for lower fees.
  • Arbitrum is not entirely different from another popular Ethereum scaling solution called Optimism. The key difference between the two is that they have different fraud-proof logics.

BitConnect hit with fresh SEC complaint

BitConnect has been hit with a new action from the United States Securities and Exchange Commission, which just announced its claim that the infamous and long-defunct Ponzi scheme conducted a securities offering that was both unregistered and fraudulent.

BitConnect — perhaps the single most notorious scam in the history of the cryptocurrency market — brought in 325,000 BTC, per the SEC. At the time, that amount totaled roughly $2 billion. Today, the total would be approximately $15 billion.

Key takeaways

  • According to a statement from the SEC on Sept. 1, BitConnect promoter Satish Kumbhani and associates “siphoned investors’ funds off for their own benefit by transferring those funds to digital wallet addresses controlled by them, their top promoter in the U.S., defendant Glenn Arcaro, and others.”
  • The move from the SEC was announced over three years after the BitConnect operation was shut down following warnings from local U.S. regulators and others globally. 

OKEx Insights presents market analyses, in-depth features and curated news from crypto professionals.

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.



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