Ethereum Miners Archives

21st September 2022

ETH Price Gets Punishment As Miners Sold Over 17,000 Ethereum

Ethereum’s recent upgrade has pushed miners out of its network. Now Ethereum 2.0 support validators who staked 32ETH and above in the network.

The community expected the merge to push the price of ETH and other cryptos up. But the reverse became the case afterward.

A few minutes after the event on September 15, Bitcoin lost $1K. Ethereum also lost more than $200, plummeting from $1,635 to $1471 same merge day. The next few days, on September 18, ETH price shaded off more and landed on $1335.33.

Currently, on September 21, Ethereum is trading at $1344.45. This price shows a 0.17% price decrease in 24 hours. Its hourly gain shows 0.17%, but the 7 days price movement indicates a 15.91% loss.

ETH’s price is currently trading above $1,300. | Source: ETHUSD price chart from TradingView.com
Ethereum Miners Dump ETH Holding Increasing Pressure

Recall that Ethereum is no longer operating with a proof of work consensus mechanism. The combination of its Beacon Chain and mainnet has rendered miners useless on the network, replacing them with validators. Even though the miners hard-forked the network creating the ETHPOW, the new network has suffered attacks and is not yet as strong and promising.

The crypto market expected a price reversal from bearish to bullish after the Ethereum upgrade. But after the event, the ETH price dropped, and the supply of ETH increased. This is not surprising because miners started disposing of their ETH coins before the merge.

Ethereum miners initially gained 13,000 ETH every day on the PoW network. But on the new PoS, validators get only 1600 ETH. Miners’ rewards dropped by 90% after the merge, which could have lowered ETH supply advantageously, pushing the price upward.

Unfortunately, Ethereum miners have dumped up to 30K ETH holding due to the price movement and the upgrade effect. This was the reason behind Ether’s price plunge from Merge day. The continuous selling added pressure on investors causing more price losses.

The current state of crypto assets is not promising. Many enthusiasts are also dumping their holdings as prices continue to plummet.

What is the Implication for Ethereum?

As miners continue dumping their ETH on the market, the price of Ether will keep falling. Even though the other factors that could have boosted the price remain positive, miners’ exit from the Ethereum market has worsened everything for ETH.

Currently, many analysts are predicting that Ethereum might drop to $750. If the miners continue selling spree coupled with the macroeconomic factors, that price level will likely occur soon.

Moreover, the upcoming Feds rate hike is causing panic already. Many investors dread the announcement as it might make the market bullish or bearish. If the rate stays 75 bps, there’s no problem. But the market is in trouble if it goes high to 100 bps.

Featured image from Pixabay and chart from TradingView.com

15th September 2022

Displaced ETH Miners Seek Refuge In Ethereum Classic, Ravencoin

The Ethereum Merge was an incredibly anticipated upgrade, with good reason. It not only drastically increased the number of transactions that the network could handle, but it also greatly diminished the energy consumption of the network. However, Ethereum miners have found themselves as collateral damage in the upgrade as there is no longer a need for their highly specialized mining hardware. Given this, ETH miners have had to find alternatives for this hardware.

The Great Exodus

In less than one hour, Ethereum miners, who had been one of the most important parts of the network, had found themselves obsolete. With the move from proof of work to proof of stake, there was no longer a need for highly sophisticated machines as the network now makes use of validators to confirm transactions.

Now that the Merge is complete, Ethereum miners are unable to mine the cryptocurrency and have instead moved to other GPU mineable tokens. This exodus from the Ethereum network has sent the miners into the arms of networks such as Ethereum Classic and Ravencoin.

ETH falls to $1,500 | Source: ETHUSD on TradingView.com

Ethereum Classic has proven to be a natural destination for the miners since it is a fork of the original ETH network. As for Ravencoin, the team had been pushing hard to onboard displaced ETH miners to its network. This move has seen interest increase in both networks and has triggered massive growth in both in such a short time.

Ethereum Classic, Ravencoin Hashrate Soar

At the time of this writing, it has only been a couple of hours since the Ethereum Merge was completed, but there are already massive changes happening across the market. As displaced ETH miners move into other coins such as Ethereum Classic and Ravencoin, both networks have seen their hashrate soar.

In the last 24 hours alone, the hash rate has more than doubled across both networks. Ethereum Classic had already been recording accelerated growth since the date for the Merge was announced. On Wednesday, its total hash rate had sat around 52 TH/s, but by the early hours of Thursday, the hash rate had grown to more than 102 TH/s.

The same is the case for Ravencoin during this time. Similar to Ethereum Classic, its hashrate is up more than 100%, rising from around 7.4 TH/s on Wednesday to more than 14 TH/s on Thursday, after peaking at 14.8 TH/s.

However, despite the move to these networks, it is still not enough to accommodate the total mining power of ETH. Experts estimate that all GPU mineable coins will only be able to absorb 15% of the total ETH hash rate before mining the coins stop being profitable.

Featured image from Forkast, chart from TradingView.com

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9th May 2022

Ethereum Miners Surpass Bitcoin Miner Revenue By $224M

After the continuous sink in the mining profitability of both digital assets year-on-year, Bitcoin miners have been set back to seats as Ethereum miners consecutively surpassed them in mining revenue and recorded a gap of $224 million in April 2022.

This month was not so good for Bitcoin miners as they were able to generate around $1.16 billion only. Notably, this figure is down by $44 million from the previous month’s mining revenue of Bitcoin. The last month saw $1.7 billion in recorded income.

Related Reading | TA: Ethereum Bears Aim Big After Recent Breakdown Below $2.5K

Bitcoin miners’ total profitability was down by 31% from April 2021 to the present. In that time, $1.7 billion in revenue was recorded.

Similarly, the single-day high of BTC mining revenue in April was 3% low than the peak value of March. As per YCharts, the best-day high in March 2022 lasted at around $47.54 million and $46.01 million in April. And it dropped 23% from the best-day high of January, which saw $60.16 million.

Unlike Bitcoin, Ethereum mining revenue in April increased by 3% generating $1.39 billion. While Bitcoin, at the same time, recorded $1.16 billion in mining revenue.

Bitcoin currently trading at $30,700 with a 9.6% decline over the past 24 hours | Source: BTC/USD chart from Tradingview.com

Still, the Ethereum mining revenue has decreased yearly from its previous marks recorded till April. The mining revenue of Ethereum in April 2022 is 17% below the previous year’s mining income of April 2021. Last year it was around $1.68 billion.

Ethereum Becomes Preferred Choice Of Miners In 2022

Although Bitcoin stands as the largest and most popular digital asset, Ethereum has become the most preferred choice of the miners seeing a higher income generated in 2022.

It was not the first time Ethereum outpaced Bitcoin in mining revenue; it surpassed BTC mining by $260 million in January, $190 million in February, and $130 million in March 2022.

To understand the reason behind disparities in the mining incomes of two digital assets, first, it needs to consider the fact that mining revenue is calculated per the value of cryptocurrency and earned coins within a specific timeframe.

Likely, Ethereum mining revenue increased in March 2022 and traded between $3,000 to $4,000 until most of April. And it traded in the range of $2,900 and $3,400 in March.

On the other side, the Bitcoin price in April traded between $37,000 and $44,000. And in March, it had a higher trading value ranging from $43,000 to $48,000.

Related Reading | Bitcoin Price Plummets To Lowest Point In 2022, Will $33,000 Hold?

Crypto mining is the process of verifying and adding new transactions to the blockchain for a cryptocurrency. The miner who wins the competition gets rewards with some amount of the currency and/or transaction fees.

Featured image from Pixabay and chart from TradingView.com

8th October 2021

Value Of Ethereum Held By Miners Reaches Five-Year Record Levels

Despite the Ethereum burn introduced with the London hard fork, miners are still making a good amount of revenue from mining. For ETH, the balance held by miners had been dropping since 2016. This was mostly a combination of poor market conditions and miners selling their holdings to fund their mining activities. With low prices, the total dollar value of miners’ ETH holdings had dropped.

This number picked back up in 2021. Following the bull run which began in 2020, the price of Ethereum has gradually recovered. And by extension, the dollar value of the miner’s ETH holdings had begun to climb. Current metrics show that the value of ETH held by miners has hit a five-year high. The last time that miners held this much value in ETH had been in 2016.

Related Reading | Polygon Founder Says Ethereum Is Set To Replace Bitcoin As The Global Standard

Miners’ ETH Holdings Reach New Peak

Data analytics firm Sentiment published a report showing the current ETH balances of miners. According to the report, miner ETH balances currently sit at 532.75K ETH, leading to a total balance of more than $1.85 billion.

#Ethereum is up to $3,480, the coin's highest price in 16 days. Notably, miner balances have continued to skyrocket. 532.75k $ETH is the largest balance held by miners since July 13, 2016. The value of these coins is $1.85B, easily an #AllTimeHigh. https://t.co/zf2g4ypqiJ pic.twitter.com/atPnYLhAgc

— Santiment (@santimentfeed) October 5, 2021

ETH price balances above $3,600 | Source: ETHUSD on TradingView.com

The last time ETH miner balances had reached this amount had been in July 2016, shortly after the Ethereum blockchain went live. ETH’s value has grown much higher since the report was published, putting current balance values even higher. This is the highest the value of miner ETH balances has ever been. Additionally, miners have been holding on to their bags. Refusing to sell until the market becomes more favorable.

Ethereum Price Recovering To Record Levels

The recent growth of ETH has contributed greatly to the increase in the value of the miner ETH balances. This, coupled with increasing hold sentiment among miners, has put miner balances on record levels. But miner balances are not the only ones experiencing a return to record levels.

Ethereum price had suffered had in the bloody month of September. This had crashed the price of the digital asset down below $3,000, bottoming out at close to $2,600, a one-month low for the asset.

Related Reading | Investors Expect Ethereum To Outgrow Bitcoin, According To CoinShares Survey

Now, with current recovery trends, the price of ETH is set to break a new record level. ETH’s recent breakout has positioned the price of the asset well above $3,600. And indicators point to the bull rally pushing the price of the digital asset above $4,000. End-of-year predictions from market analysts have placed the asset at a $5,000 price mark, with bitcoin hitting $100K.

It is still too early to tell if Ethereum will hit the price targets set for it by analysts. But the asset is now trading in the green and continues to be favored among crypto investors. ETH’s price is trading at $3,616 at the time of writing.

Chart from TradingView.com

30th September 2021