Yesterday the new all-time high with regard to the Ethereum hashrate.
The peak of Ethereum’s hashrate
Ethereum is currently still fully Proof-of-Work based, like Bitcoin, although it is in the process of moving to Proof-of-Stake. This means that, for now, Ethereum mines exactly like Bitcoin, albeit with a different algorithm.
After a sharp drop in Ethereum’s hashrate, which went from 632,000 Gh / s on May 19th to 477,000 Gh / s on June 26th, the hashrate started to rise again.
The new one was registered yesterday peak at over 715,000 Gh / s, or 13% more than the peak of 19 May.
However, it must be said that the current price is lower than that of mid-May, when it reached an all-time high of over $ 4,300, against the current $ 3,200.
The fact is that the hashrate can only slowly increase, because it requires the purchase and configuration of new machines, which are not always available immediately.
So it is normal that the current hashrate has grown to higher levels than in mid-May despite the price having dropped.
It should be noted that the minimum peak of the hashrate of this cycle was recorded at the end of March 2019, when it dropped to 136,000 Gh / s, which is 80% less than yesterday’s peak. At the time, the price was around $ 140, which is 95% less than the current value.
Bitcoin vs Ethereum
Given that the Bitcoin hashrate has also risen a lot since the end of June, although it has not yet returned to its maximum levels, it is possible to say that the mining crisis triggered by the new Chinese bans is definitively over.
Many miners have closed their operations in China, and among them some have moved them elsewhere, particularly in North America where they have found fertile ground, and produced electricity at low cost.
The curious thing about Ethereum, however, is that after the last hard fork, London, which introduced the burn of part of the fees collected by the miners, a reduction in the hashrate was expected, precisely due to the reduction in the fees collected. However, this was not the case also because in the meantime the price of ETH has risen, allowing the miners to offset the loss of fees with a higher ETH value.
It is also possible that miners are expecting further growth in the value of ETH, prompting them to mine as much as possible.
The fact that the Bitcoin hashrate has not yet returned to the maximum may suggest that some miners who used to mine Bitcoin before the Chinese crisis are now mining Ethereum.
The famous pop singer Jason Derulo this morning he asked on his official Twitter profile if either Ethereum or Solana is better.
Real question is Solana or Ethereum?
– Jason Derulo (@jasonderulo) September 13, 2021
The price of Solana is by far the one that has performed best in the last month among those of the main cryptocurrencies, registering a + 12% against for example -18% of ETH and -13% of BTC.