Ethereum has dropped 2.64% in the last seven days, as it appears that 80% of Ethereum miners have given up after the Merge. Data from 2miners, a service that tracks the hash rate of Proof of Work networks, shows that eight out of ten Ethereum miners have stopped operating following The Merge.
Rising hash rates have made many networks that serve EtHash miners unprofitable, and as a result, many miners are choosing to shut down their hardware.
Ethereum Miners Facing Profitless Mining
TheCrowbill, an Ethereum Classic miner, said on September 27th, “I’m mining at a loss.” This state “is likely to persist for some years to come.” Following the September 15th chain merge, Proof of Work miners was removed from the Ethereum network and replaced with Proof of Stake validators. As a result, miners shut down an estimated $5 billion in mining hardware, cutting Ethereum’s energy consumption by 99.8 percent.
To absorb a sizable portion of Ethereum’s former miners, Ethereum Classic and the freshly forked ETHW chain have made some attractive offers. However, concerns were raised over whether or not the networks could accommodate such a dramatic increase in hash rate without causing miners to lose money.
2miners reports that since reaching a high of 307 Tera hashes per second (TH/s) on the day of the Merge, the hash rate of Ethereum Classic has dropped by 47.6 percent.
Ethereum’s Bearish Bias Dominates
The current price of Ethereum is $1,327.21, with a 24-hour trading volume of $19 billion. In the previous 24 hours, Ethereum has gained 0.31%. CoinMarketCap now ranks #2, with a live market cap of $162.67 billion. It has a circulating supply of 122,566,157 ETH coins and no maximum supply. The reason for its downward rally could be attributed to reports indicating that roughly eight out of ten Ethereum miners appear to have gone down following The Merge.
Data show that many miners turn off their equipment as hash rates increase, rendering many networks hosting EtHash miners unprofitable. Furthermore, bearish sentiment in the cryptocurrency market was a key factor that kept the Ethereum coin under pressure. During the US session, the cryptocurrency market was again red, with the major crypto tokens falling. Meanwhile, the strong US dollar, supported by various factors, weighed on Ethereum prices.
According to 2miners, the hash rate of Ethereum Classic, which was predicted to be the main shelter for Ethereum miners, has dropped 47.6% after peaking around 307 terahashes per second (TH/s) on the day of The Merge.
Uncertainty in the Cryptocurrency Market
The cryptocurrency market fell throughout the morning and failed to recover. On Thursday, the overall crypto market value fell 3.61 percent to $924.61 billion, as the world’s two largest cryptocurrencies, BTC and Ether, both fell further. Bitcoin falls below $19,000. However, one reason for the bearish crypto market could be that the Federal Reserve continues to raise interest rates. As a result, the bearish crypto market was viewed as one of the key factors keeping ETH prices under pressure.
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