Ethereum’s hashrate has taken a fall of 20%, which has impacted its mining profitability negatively. The fall in hashstate is the highest it has taken in the history of the blockchain.
The 20% Fall In Ethereum’s Hashrate
The second highest valued cryptocurrency in the crypto space has seen its hashrate fall by 20%. This has fallen from 294 Terahashes to a low of 246 TH/s; to its February levels.
Notably, the fall put the blockchain hashrate to its most significant drop ever since Ethereum’s creation in 2015. The effect of this is tolling on Ethereum mining, making the procedure unprofitable to miners.
Meanwhile, the price of the cryptocurrency has been falling in recent months from around $400 to a low of $167, not until the recent increase back to $220. Also, the bearish trend the cryptocurrency market is experiencing has taken more toll on Ethereum than other top cryptocurrencies. This has seen it lost about 90% worth of its value a year ago.
The unprofitability of its mining procedure to miners have made many unable to cover their costs and some trying to survive the hard times.
Comparison between Bitcoin and Ethereum Hashrates Decline
In the year 2014 and 2015, Bitcoin’s hashrate also took a deep fall during the period. This caused it to reach the cost of the production floor. Similar to this time, Bitcoin miners also experienced some hard times due to the decline.
Bitcoin salvaged the situation then with the introduction of some newly introduced ASIC devices, which impacted the hashpower rate positively.
There were speculations that super efficient ASICS have been developed for ETH mining. The speculation which seems unreal also continues to affect the adverse effect on the group of miners.
This negative impact that has taken a toll on Ethereum mining is said not to end any time soon, as issuance is said to be reduced by 33%.
The competitive nature of the proof of work mining further puts the group of miners in difficulty. This is because it is designed to make mining miners-self-organized without central coordination.
Like the thought of the Ethereum Co-founder, Vitalik Buterin, on making blockchain tech more usable and accessible for users in the crypto space, the same onus lies in its founders to salvage the situation of Ethereum blockchain’s hashrate.