Is DeFi making Ethereum mining profitable again?

Last month rapid rise of multiple new DeFi projects. The transaction costs on Ethereum, the leading DeFi platform are up nearly 2 orders of magnitude.

The competition for DeFi related transactions is the main driver of fee increase on Ethereum network. The gas costs have soared over 500 gwei multiple times in the past few days.

The competition in the gas market has been providing additional revenue for Ethereum miners, exceeding the base revenue from block rewards.

Furthermore, the appreciation of ETH in dollar terms has amplified the dollar gains.

The hashrate however has not increased in the same proportion, causing the mining profits to rise.

Here are both plotted as cumulative sum of daily percent changes, where Revenue = Total ETH mining rewards * ETH price.

According to What to mine, Ethereum is currently the most profitable coin to mine, yielding > $5 in daily profits for a single 1080ti on 10c USD electricity cost.

This is therefore presenting a short-term profit opportunity for operators with spare GPU capacity.