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Ethereum's Hashrate Reaches New All-Time High Amid Market Bloodbath

Sun, 02/20/2022 - 15:36
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Arman Shirinyan
The amount of Ethereum in circulation increases as the mean hashrate reaches new all-time high
Ethereum's Hashrate Reaches New All-Time High Amid Market Bloodbath
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Ethereum's mining power has faced another surge and reached a new all-time high as the cryptocurrency market in general faces another wave of selling pressure caused by increased risk-off tendencies on global financial markets.

The continuous increase in the mean hashrate of Ethereum was observed since the summer of 2021 when the Chinese government decided to initiate the crackdown on the mining industry, which caused a rapid drop in mining power on all cryptocurrencies functioning on the PoW protocol.

But at the same time, the rapid drop of the hashrate in 2021 helped Bitcoin and other cryptocurrencies to avoid the selling pressure that was coming from cryptocurrency miners and create a supply deficit on the crypto market.

Ethereum switching to PoS

Previously, Ethereum developers announced the soon-to-come switch of the network to a PoS protocol, which will turn off the mining of the coin completely. Validators will replace miners and will act as the main block exploring power.

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Currently, every user on the network can become a validator by sending funds to the Ethereum staking contract. In order to do so, users have to move 32 ETH to the contract that will lock those funds until the user decides to withdraw his or her Ether from the network.

Ether's market performance

At press time, Ethereum is mostly following the general trend on the cryptocurrency market and losing approximately 5% of its previously gained value. The last week also was not a relief for ETH investors as the second-largest cryptocurrency has lost more than 17% of its value in a matter of four days.

Currently, Ethereum is moving at September's price level and has already lost more than 45% from its current all-time high reached back in November 2021.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.