Ethereum mining challenge and hashrate hit peak: here’s why
Coinputin.com – The mining challenge of Ethereum (an indicator of competition among Ethereum miners) and hashrate (computing power) have reached all-time highs. According to the block, while the price of ETH continues to rise, these indicators indicate that more people want to mining ETH.
Ethereum’s mining challenge reached an all-time high of 3,615 terahash (TH), while hashrate reached 285 TH per second.
According to the news source, Thomas Heller, Chief Operating Officer of crypto mining firm Hashr8, the main reason behind Ethereum’s mining challenge and the increase in hash rate is the increase in miner revenue. “Ethereum mining revenue has been increasing recently due to the rising ETH price and also slightly higher ETH transaction fees,” Heller said.
In addition, according to Dmitrii Ushakov, commercial director of crypto mining farm Bitriver, Chinese industrial miners run the ETH mining activity. “They have been accumulating GPU-based mining equipment since this year’s DeFi [decentralized finance] hype and the rise in the price of ETH, “Ushakov said. Both have resulted in higher rewards for ETH miners,” the report said.
Heller said the GPU as well as ASIC miners were in demand. He also said that as more mining machines (both GPU and ASIC) are used and the ETH price continues its rising trajectory, the Ethereum hashrate and mining challenge could increase further.
Ushakov also expects these indicators to rise further in the coming months.
Mining will end with Ethereum 2.0
As the network moves towards a proof-of-stake model with developments around the Ethereum 2.0 update, it is important to note that Ethereum mining will stop in the medium term.
The Eth2 upgrade is divided into many phases, which are expected to occur until at least 2022. After the final Eth2 phase, Ethereum mining will cease.