Bitcoin is not the only victim of China’s ongoing mining crackdown as a significant amount of Ethereum is also mined in the mainland. And as Chinese miners pulled out, the Ethereum hashrate has plummeted by more than 25% since its peak in mid-May.
The hashrate drops 25% on China mining exodus
According to Bitinfocharts, the Ethereum network hashrate hit an all-time high of 585.5 TH/s (terahashes per second) on May 20. In the weeks that followed, it slumped to a three-month low of 434.3 TH/s. This is a direct result of China’s crypto mining crackdown and the resulting migration of mining operations.
The 26% drop in just six weeks is one of the steepest drops in Ethereum’s history. Just 40 days after the hashrate peaked, it fell 17% in just 10 days. This is the worst drop in a 10-day period in Ethereum’s history.
During the 2018 crypto winter, the Ethereum hash rate fell by 57%, but it fell for several months. China-based Sparkpool, Ethereum’s second-largest mining pool, has seen a nearly 30% drop in hash rate since the ban was enacted. The transition to ETH 2.0 and proof of stake will eventually eliminate all Ethereum mining, but there could be a few tough months ahead for ETH miners.
Even so, the overall activity of addresses on the Ethereum blockchain has exceeded that of Bitcoin – for the first time in the history of the digital asset, according to Santiment.
“Following up on yesterday’s report on #Ethereum #FUD and the buying opportunity we saw, today has marked a historic day – For the first time in #crypto history, $ETH address activity is ABOVE $BTC address activity, as prices have soared back above $2,100,” Santiment tweeted.
According to Santiment’s chart, around 651,560 wallets were involved in various activities on the Ethereum blockchain yesterday — compared to Bitcoin’s 597,280.
ETH has shown better results than most other cryptocurrencies in terms of recent price gains. At press time, ETH is trading at around 2,160, up about 10% over the past seven days, according to CoinMarketCap.
Bitcoin, in turn, is trading at $35,900, up 4% on the day. In terms of weekly gains, there is relative parity between Ethereum and Bitcoin, with the former showing slightly better results.
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