The amount of ether (ETH) that are in the hands of miners has reached record levels in US dollar terms as they remain reluctant to sell.
The Ether miners’ balance is the largest since the network was launched five years ago. When converted to USD, it is at an all-time high of $ 1.85 billion, according to data provided by analytics platform Santiment.
Signature set that 532,750 ETH is the largest balance held by miners since July 13, 2016. The amount equates to around 0.45% of Ethereum’s total circulating supply, which is currently 117.8 million ETH.
Miners typically sell the asset regularly to cover expenses, which include electricity and hardware costs. The reluctance to sell suggests that miners could expect more price increases.
Hash rate not reached
Ethereum’s hash rate, which is often seen as a reflection of the health and safety of the network, plummeted during the exodus of miners from China along with that of Bitcoin. Ethereum’s hash rate fell to 477 terahashes per second (TH / s) at the end of June, but it made a full recovery in the last three months, reaching new peaks. It is currently up 150% since the beginning of the year.
That’s despite the fact that China-based Ethereum mining pools dropped out of the race, with SparkPool and BeePool suspending operations in recent weeks. Interestingly, there has not been a noticeable drop in the hash rate that hit an all-time high of 745 TH / s on Tuesday, according to BitInfoCharts.
Cointelegraph reported in September that Ether miners had begun to hoard the asset. following the London hard fork in early August. Research from crypto exchange Kraken suggested miners expected more price increases from potential deflationary properties following the launch of the Ethereum 1559 upgrade proposal, which burns some of the transaction fees.
Since the update went live on August 5, 473,120 ETH worth around $ 1.7 billion have already been burned, according to Ultrasound Money.
In addition to the reduction in supply, a large percentage has also been wagered on the Ethereum 2.0 beacon chain contract. Around 6.7% or 7.9 million ETH has been blocked for gambling according to Eth2 explorer. At current prices of around $ 3,577, this equates to roughly $ 28 billion worth of value.