Ethereum mining breaks records
Saturday, June 4, the difficulty of mining the Ethereum blockchain reached historic heights. According to data from Etherscan, this difficulty increased to 15,089,793 terrahashes (TH).
The higher this value, the more difficult it is to mine a network block. So, this metric is a increased function of computing power deployed to all miners, to guarantee the stability of the blockchain.
Figure 1: The difficulty of mining in Ethereum
As shown in Figure 1, since the Chinese ban last summer, the difficulty of mining continues to increase as new miners arrive to strengthen the network. In addition, the computing power deployed later is also available reached a new record this Saturdayaccording to the CoinWars website.
Figure 2: Ethereum hashrate
The hashrate, as it is called, thus arrives highest peak of 1.318 8 petahashes per second (PH/s). The condition is used here, because Etherscan returns a daily average value of 1.08 PH / s and does not offer an intraday chart to compare the data.
However, that doesn’t take away from the fact that the month of May is over a record for computing power sent by the miners to Ethereum, and that June it seems confirm the trend.
👉 To proceed – Find our guide on Ethereum (ETH)
Network usage is following the decline
Surprisingly, while the competition between minors is not yet as intense, the network has seen its attendance. hit the annual low with 401,055 active addresses as of June 4. It is required back on December 10, 2020with 381,124 active addresses, to find a lower value.
Figure 3: Active Ethereum addresses
June 4 also appears annually lower in the number of daily transactions, for a total of 1,029,121. As with the number of active addresses, Figure 4 shows us that we will also need to go back by the end of 2020 to find lower values. That is November 29, 2020 for 993,930 transactions.
Figure 4: Number of daily transactions
This downtrend in Ethereum blockchain solicitation benefit these users. In fact, the price of transactions has been much lower in recent months, compared to what is seen in the heart of the bull run.
Figure 5: Average price of a transaction
On May 28, the average price of a transaction was $ 3.73, down since July 11, 2021 which recorded $ 2.43.
The statistical aberration seen in Figure 5, which brings a daily average to $ 200.06 on May 1, is equivalent to land sales in Otherside, Yuga Labs ’metaverse.
The upcoming arrival of Merge
Decreased network traffic not exclusive to Ethereum. However, it follows a general trend, due to the fall in prices themselves, which makes avoid investors.
Like other cryptocurrencies, ETH now works a hinge zone, which was also defended at this time last year. This place is about $ 1,800.
Figure 6: ETH price
An idea popular in the ecosystem describes that the price of ETH could rebound as Ethereum moves to proof-of-stake (PoS) consensus: the union.
This idea is defended by a future severe reduction in rewards Assigned to each block generation. Along with the burn mechanism, implemented in August with EIP-1559 combinationthis historic change could be equivalent to three halvings of the Bitcoin (BTC) network in terms of reducing inflation.
Figure 7: Number of ETHs burned since the implementation of EIP-1559
while 2.4 million ETHs have already been burnedasset scarcity is likely to decrease further, as long as the consensus change is good.
We can understand the recent mining records in Ethereum. Minors will benefit in previous months when it was still possible to join ETH by proof-of-work (PoW), prior to this activity pause.
However, there is no guarantee that the Merger will raise prices. First, it depends on overall ecosystem healthbut also keep in mind that 10% of all ETH in the network goes back into circulation.
The staking contract for Ethereum, 2.0 implemented on November 3, 2020, is really significant nearly 12.8 million ETH. It will be released how many hours after the final settings, once the transition to proof-of-stake has taken place. So investors can choose take and profitthus lowering the price.
👉 Also in the News – New York Senate Passes Moratorium on Cryptocurrency Mining
Sources: Etherscan, CoinWarz, TradingView, Beacon Chain contracts
Get a crypto news recap every Sunday 👌 And that’s it.