Unexpected Increase in Ethereum Hash Rate

At Ethereum, we have witnessed an expanding network service throughout the year 2020. Blockchain has  seen an increased influx of stablecoins and funds into various ETK-based DeFi initiatives. At the same time, the Ethereum hash rate recorded steady growth in 2020.

With this growth that Ethereum has seen in the last five months, more investors have started to realize its potential and therefore allowed ETH to see an increase in demand. This also coincided with a large increase in the
cryptocurrency’s
hash rate, which has climbed just under 27 percent since the beginning of the year.

From a price perspective, we can say that Ethereum has done very little to excite the investor over the past year. Although a parabolic rally was seen in February, this rise was short-lived and was followed by an intense decline that descended to lower levels from the zone below $100.

But this has done little to curb network development over the past few months . According to data from analytics platform Glassnode, ETH’s hash rate increased by close to 27 percent during the year. This is the highest level seen in seven months.

Aside from that, it’s worth remembering that the cryptocurrency’s current hash rate of 166 th/s is still significantly lower than the all-time high of 250 th/s set in August of 2018.

As cryptocurrency research platform CryptoSlate reported in late May, analysts cite Ethereum’s growing utility as the primary driver driving its core strengths, and it also influences investor demand for the cryptocurrency.

Renowned investors consider there to be a growing link between the utility of Ethereum and the demand for ETH. ETH miners have received $3.5 million in rewards in the last 30 days. In the chart below, we see that the demand for block space is mostly driven by stablecoins and DeFi,  which account for the vast majority of the fees paid to miners .

However, it is important for investors to consider the effects of increased utility and power on Ethereum’s price action ultimately. However, both of these factors seem to be positive for ETH’s medium-term outlook.

What is Swipe Token (SXP)?
Swipe Token (SXP) is the native utility token that powers the Swipe ecosystem, a platform built to bridge the gap between cryptocurrencies and traditional finance. With Swipe, users can spend crypto as easily as fiat through crypto debit cards, digital wallets, and payment APIs. At the core of this system is the SXP token, which fuels transactions, offers staking rewards, and enables decentralized...
What Is TRON (TRX) and How Does It Work?
TRON (TRX) is a blockchain-based decentralized platform that aims to revolutionize content sharing, data ownership, and the digital entertainment industry. Initially founded by Justin Sun in 2017, TRON set out to eliminate intermediaries by allowing creators to distribute content directly to consumers via the blockchain. Over the years, it has grown into one of the leading blockchain ecosystems, boasting...
House of Representatives to Launch “Crypto Week” – Lummis’ New Bill for Crypto Tax Regulations
House of Representatives to Launch “Crypto Week” The US House of Representatives has declared the week of July 14 as “Crypto Week.” This week, the stablecoin bill GENIUS, the market structuring act for digital assets, and bills on central bank digital currencies (CBDC) will be discussed. The goal is to pass the House of Representatives and approve the stablecoin regulations, which are expected to reach...
What Is RWA in Crypto?
RWA means Real World Asset in crypto. It refers to physical or traditional financial assets made digital and available on blockchains. Imagine owning part of a building, a bond or a piece of artwork through crypto tokens. That simple step merges real-world value with DeFi innovation. These assets have become a hot topic in DeFi because they bring fresh use cases to the space. They let you access things...
Solana Staking ETF, a First in the US, Now Available for Trading - Ripple Applies for US Banking License
Solana Staking ETF, First in the US, Opens for Trading The REX-Osprey Solana + Staking ETF (SSK), developed in collaboration with REX Shares and Osprey Funds, has become the first crypto staking ETF to start trading in the US. The fund, which started trading at $ 25.47 on the Cboe exchange, offers investors both exposure to the Solana (SOL) price and the opportunity to earn staking returns on the Solana...


Create an account

Now create an account where you can use your knowledge.