Ethereum Mining Difficulty Just Inches Away from All-Time-High
In the letter
- The difficulties in mining Ethereum hit a two-year high today.
- It measures how difficult it is to find mining blocks on the Ethereum blockchain that are required to process Ethereum transactions.
- The rise in mining difficulties follows the booming price.
Ethereum’s mining troubles hit a two-year high today.
Mining difficulties on the Ethereum blockchain rose to 3,650 terahashes at 11:15 UTC today. This is the second-highest level ever, as data from market analysis company Glassnode shows.
By a hair. On August 9, 2018, Ethereum’s mining difficulty hit its all-time high of 3,651 terahashes, according to Glassnode.
Ethereum Mining Difficulty measures how difficult it is to mine blocks on the Ethereum blockchain. Mining blocks are required to process Ethereum transactions.
The difficulty of mining is determined by the number of active miners on the network. Increasing the computing power of the miners increases the difficulty. This ensures that the blocks are not generated disproportionately quickly.
Ethereum’s mining troubles have been mounting throughout the year, but at the end of August, when the DeFi (decentralized finance) boom had its final hurray this summer. Investors poured billions into decentralized exchanges and money markets based on Ethereum, which led to an increase in activity in the Ethereum network.
The recent surge in mining troubles follows the booming price of Ethereum, which topped $ 500 for the first time since the summer of 2018 and has been rising for months.
Perhaps Ethereum even owes Bitcoin to it. Bitcoin, the largest cryptocurrency by market cap, has seen its price jump around $ 8,000 since the beginning of October when the price was around $ 10,500.
Bitcoin’s mining difficulties haunt Ethereum’s, although Bitcoin’s mining difficulties are far away. far higher at 134.57 EH / s. An exahash is one trillion hashes per second.
Earlier this month Decrypt reported that Bitcoin’s mining troubles saw the second largest adjustment in its 12-year history when they fell roughly -16%.
But bitcoin miners still have a long way to go before the Ethereum miners overtake them.