Ethereum’s Hashrate Reaches New ATH Fueling ETH Price Recovery
According to on-chain data analytics provider, Glassnode, Ethereum’s Hash Rate just reached an all-time high (ATH) of 532,411,759,741,113. As a Proof-of-Work (PoW) network, the hashrate is a measure of the processing power of the Ethereum blockchain. The hashrate specifically helps determines the number of times the network can attempt to complete a difficult mathematical puzzle every second, in order to add blocks of verified transactions to the blockchain.
The increasing hashrate as seen helps measures the network’s health, as the higher this rate, the greater the number of miners that will be needed to launch a 51% attack on the system, a highly unlikely situation.
Amidst the growing clamor for alternatives to Ethereum’s skyrocketing transaction fees, the burgeoning hashrate is an anchor for the network’s core believers.
Implications of the Increasing Hashrate on ETH Price
The global cryptocurrency industry has a lot of factors that affect its growth per time, and while Ethereum is just one of many, the hashrate growth adequately coincides with a rise in the price of the digital currency.
On average, Ethereum traded at around $1,650 in the past week, joining to fuel an aggressive dip in the global cryptocurrency market capitalization. After dropping to a weekly low of $1,560.37, the coin is now exchanging hands at $1,710.43, up 2.32% at the time of writing according to CoinMarketCap.
Ethereum’s recovery is a well-backed one, and though there is a bit of correlation with Bitcoin, Ethereum bulls are confident in the positioning of the network as one of the most secure in the world. While awaiting the implementation of the EIP 1559 upgrade as well as the full rollout of the Ethereum 2.0, the future Proof-of-Stake (PoS) network, Ethereum bulls will continue to hang on positive on-chain metrics such as the hashrate growth amongst others to continually resist the bearish dump-off.
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