ETH miners' last stand? Ethereum hashrate soars amid NFT craze

Ethereum (ETH) is looking good – The network’s hash rate is hitting a new record high after experiencing a significant drop after May 2021. The network continues to receive sufficient hash power, as the progression to Ethereum 2.0 gradually pushes miners towards the door. out

End of migration for Ethereum miners

According to data from The Block, Ethereum’s 7-day average hashrate recorded a new record on August 26, 2021, surpassing the 600 Terahashes per second (TH/s) mark, a level it had been approaching in May 2021. This hashrate subsequently dropped to 465 TH/s on 6 July 2021.

This sharp drop was largely due to the hunt for miners in China who then had to stop mining and move to other countries. Bitcoin ‘s hash rate (BTC) had also been a victim of this crackdown, but the hashrate has been on the rise again recently, a rebound signaling the end of the miner migration.

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Ethereum’s record-breaking hashrate in an offbeat environment

Ethereum’s hashrate hits a new high as activity on the blockchain increases with the continued development of decentralized finance, but also with NFT fever in the summer of 2021. To name just a few cases illustrating this “craze” around NFTs, the Art Blocks platform’s Fidenza #313 recently sold for 1,000 ETH, or about $3.3 million at the time of sale. And these NFTs sold or valued at 7 figures or more are not uncommon. Feisty Doge, the NFT containing the photo of Dogecoin’s Shiba Inu (DOGE), is estimated to be worth $110 million thanks to a split strategy.

This new record reached by the Ethereum hashrate is all the more interesting, due to the fact that it comes only a few weeks after the London update that implemented the burn (the destruction) of a part of the fees on the network, and which was theoretically supposed to impact negatively on the miners’ revenues. The latter did not see the arrival of this new mechanism as a good thing.me. Given the current hashrate, miners have not left the network, although future upgrades will see a switch from proof-of-work to proof-of-participation, a move that will signal the end of mining on Ethereum.

Will miners increasingly increase their hashing power as the date of this switch to proof of participation approaches? They’d be going all out to earn more Ether than they have in recent years, a motivation that would be explained by Ether’s potential to even present a better trading setup than Bitcoin according to a former Goldman Sachs executive.

In August 2021, it’s hard not to see the potential of Ethereum for the future, both from a technological and economic point of view. To get and trade your first ethers, The Coin Journal recommends the reference platform FTX. This affiliate registration link FTX will also offer you a lifetime discount on your transaction fees.