Recently it was on Crypto Insiders to read that the so-called hash rate from the Bitcoin (BTC) network had fallen by as much as 50% in the past month and a half. On May 13, the hash rate was still around 170 exahashes per second (EH/s) and a few days ago it even fell below 90 EH/s.
This has to do with the fact that China has been cracking down on the bitcoin-mining industry. Several regions that were previously popular for miners have now completely banned it. However, this not only has a negative effect on Bitcoin’s hash rate but also on that of Bitcoin Ethereum (ETH).
According to data from Etherscan on YCharts Ethereum’s hash rate skyrocketed this year. On January 1, the hash rate was still around 300 terahashes per second (TH/s) and peaked at 644 TH/s on May 20. Since then, the Ethereum hash rate has also been falling sharply and last week this decline started to accelerate. On June 25, the hash rate will be 481 TH/s, which is a decrease of about 25% in a month.
The decrease in the hash rate somewhat corresponds to the decrease in the prices. The ether price reached another . on May 12 all-time high (ATH) from $4,350 and dipped to $1,720 this morning, its lowest since late March.
However, the hash rate of bitcoin is now slowly rising again. This may have to do with the fact that some miners have already moved abroad, a large mining company recently left for Kazakhstan. Ethereum’s hash rate may also start to rise again in the coming days, but a full recovery could take several months. Kevin Zhang of Foundry recently warned about this.
Ethereum is currently transitioning from Proof-of-Work (PoW) system to a Proof-of-Stake (PoS) system with Ethereum 2.0. The network will then no longer need miners at all.
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