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.

US Approves Three Major Crypto Regulation Bills - XRP Reaches All-Time High
US Approves Three Major Cryptocurrency Regulation Bills The US House of Representatives voted to approve three major cryptocurrency bills during its July session: the Digital Asset Market Clarity (CLARITY) Act, the National Stablecoin Innovations Identification (GENIUS) Act, and the Anti-CBDC Oversight Act. The CLARITY and GENIUS bills received strong bipartisan support, while the Anti-CBDC bill passed...
What Is DODO Coin?
A Comprehensive Guide to the Decentralized Trading Protocol The decentralized finance (DeFi) landscape continues to evolve rapidly, with innovative protocols emerging to provide more efficient, secure, and user-friendly trading solutions. One such protocol is DODO, a decentralized exchange (DEX) that aims to solve some of the most critical challenges in automated market making and liquidity provision....
US House of Representatives Moves to Final Vote on Major Crypto Bills - US's Largest Banks Prepare to Issue Their Own Stablecoins
US House of Representatives Moves to Final Vote on Major Crypto Bills The US House of Representatives has passed a preliminary procedural vote to advance three major crypto legislation bills—the GENIUS, CLARITY, and Anti-CBDC bills—to a final vote. The move, which passed 217-212 late Wednesday night, revives previously rejected bills. The GENIUS Act aims to create a federal regulatory framework for...
What Is Pump.fun (PUMP) and How Does It Work?
Pump.fun is an emerging decentralized platform designed to simplify and democratize the process of launching and trading meme tokens on the Solana blockchain. It has quickly gained traction among crypto enthusiasts due to its novel approach to token creation, automatic pricing mechanics, and meme-centric culture. Unlike traditional launchpads or token creation tools, Pump.fun enables users to deploy...
What Is Cryptojacking?
As the adoption of cryptocurrencies continues to expand, so do the associated security threats. Among the growing list of cybercrimes, cryptojacking has emerged as a particularly stealthy and damaging tactic. Often unnoticed by victims, cryptojacking allows malicious actors to exploit computing resources for unauthorized cryptocurrency mining. In this article, we’ll examine what cryptojacking is, how...


Create an account

Now create an account where you can use your knowledge.