The amount of ETH held by miners has hit record levels in US dollars.
Ethereum’s current balance held by miners is the largest since the network launched five years ago. According to the analysis platform Santiment, converted into USD, it is at an all-time high of 1.85 billion US dollars.
Santiment claims that 532,750 ETH is the largest credit miners have had since July 13, 2016. The coin accounts for about 0.45% of the total circulating supply of 117.8 million ETH.
Miner ETH credit and ETH price | Source: Santiment
Typically, miners often have to continuously sell coins to cover costs such as electricity, labor, maintenance or reinvestment. Holding a large amount of coins now shows that miners expect price increases in the future and do not want to sell “cheap” in the present. Or the profit from mining is much greater than the costs.
Hashrate reaches ATH
Ethereum’s hashrate, often viewed as a reflection of the state of the network and security, collapsed during the miners’ exodus from China. Ethereum’s hashrate fell to 477 terrahashes per second (TH / s) in late June, but has fully recovered and hit a new high (ATH) in the past three months. It has now risen by 150% since the beginning of the year.
Ethereum hashrate | Source: Etherscan
Even so, China-based Ethereum pools have “followed their husbands out of the game,” with SparkPool and BeePool shutting down in recent weeks. Oddly enough, there wasn’t a significant drop in hashrate during this time, and even hit an all-time high of 745 TH / s on October 5th.
In September, miners started hoarding ETH after the London hard fork. A study by the Kraken exchange shows that after the introduction of the proposed EIP-1559, which should reduce supply to ETH over time, miners expect further upside potential from deflationary properties.
Since the London hard fork was completed on August 5, 473,120 ETH, worth approximately $ 1.7 billion, have been burned by EIP-1559.
In addition to the supply shortage, a large percentage was transferred to the ETH 2.0 smart contract (beacon chain), around 6.7% or 7.9 million ETH were blocked for staking. At current prices of around US $ 3,500, this equates to a property value of over US $ 28 billion.
Despite the high gas fees, the Ethereum blockchain is still the busiest network with tons of dapps and developers working on it and of course no Ethereum killer has yet been able to kill it.
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According to AZCoin News