The amount of Ethereum in circulation increases as the mean hashrate reaches new all-time high
Ethereum’s mining power has faced another surge and hit a new all-time high as the broader cryptocurrency market faces another wave of selling pressure caused by heightened risk trends across 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 in hashrate in 2021 helped Bitcoin and other cryptocurrencies avoid selling pressure that came from cryptocurrency miners and create a supply gap in the cryptocurrency market. cryptography.
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.
Currently, every user on the network can become a validator by sending funds to the Ethereum staking contract. To do this, users must move 32 ETH to the contract which will lock these funds until the user decides to withdraw their 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 trading at the September price level and has already lost more than 45% from its current all-time high reached in November 2021.
