As miners remain reluctant to sell, the amount of Ethereum they have in their possession has reached new records in U.S. dollars terms.
Ethereum miners hold the balance, which is the highest it has been in five years since the network’s launch. According to data from analytics platform Santiment, the historic peak of $1.85 trillion is reached when it’s converted into USD.
According to the firm, the 532750 ETH balance is the largest held by miners since July 13, 2016, at the time. This amount is equivalent to 0.45% of Ethereum’s total circulating supply, currently 117.8million ETH.
Balances and prices for Ethereum miners – santiment.net
To cover their expenses, miners typically sell the asset frequently. Miners may be hesitant to sell the asset, which could indicate that they are waiting for higher prices.
Not enough hash rate
The Ethereum hashrate, which is often seen as a measure of network security and health, plummeted during the exodus of Chinese miners along with Bitcoin’s. The Ethereum hash rate dropped to 477 TH/s late June, but it has recovered completely over the past three month and has risen to new heights. It has risen 150% in the past year.
This is despite China’s Ethereum mining pools withdrawing from the race. SparkPool, BeePool and other companies have been unable to operate in recent weeks. Curiously, there has not been a noticeable drop in the hash rate. It reached an all-time high 745 Terrahashes per Second (TH/s), on Oct. 5, according to Bitinfocharts.
Related: Since Feb. 2016, miners have amassed $600M in Bitcoin.
Cointelegraph reported that Ethereum miners began hoarding the asset in September after the London hard fork in August. According to Kraken, miners expected further price rises from possible deflationary properties after the launch of EIP-1559, which burns some transaction fees.
According to Ultrasound.Money, 473,120 Ethereum worth approximately $1.7 billion have been burned since the upgrade was made live on Aug. 5.
A large portion of the Eth2 Beacon chain contract has been used to stake ETH, further increasing the supply problem. According to the Eth2 explorer, 6.7% of 7.9 million ETH have been locked up for staking. This amounts to approximately $28 billion at current prices of $3,577
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