The amount of Ethereum held by miners has risen to record highs in South African Rand terms as they refuse to let go of the digital currency completely.
Cryptocurrency miners now have more money in their accounts than they’ve had since the network’s inception five years ago. According to statistics from analytics platform Santiment, when converted to USD and other fiat currencies like the South Africa Rand, it’s at a historic high of R27.7 billion.
According to the company, the 532,750 ETH balance is the most it has seen since the 13th of July, 2016. About 0.45 percent of Ethereum’s total circulating supply, or about 117.8 million ETH, is in circulation right now.
The asset is typically sold by miners on a regular basis to cover expenditures such as electricity and hardware. A hesitation to sell could indicate that miners are waiting for prices to rise further.
Failure to hit the hash rate
As with Bitcoin’s hash rate, the Ethereum network’s hash rate plummeted due to the departure of miners from China. In late June, Ethereum’s hash rate dropped to 477 TH/s, but it has since recovered completely and rocketed to new highs. It has increased by 150% since the start of the year.
Despite the fact that SparkPool and BeePool, two China-based Ethereum mining pools, have recently ceased operations, the race continues. The hash rate, which peaked on October 5 at 745 terrahashes per second (TH/s), has not decreased noticeably, according to Bitinfocharts.
According to a September report from Cointelegraph, Ethereum miners began hoarding the cryptocurrency after the hard fork in London occurred in early August. After the publication of EIP-1559, which burns a portion of transaction fees, research from the Kraken crypto exchange revealed that miners expected further price hikes due to potential deflationary tendencies.
Ultrasound estimates that 473,120 ETH, or almost $1.7 billion, have been burned since the upgrade went live on August 5.
The Eth2 Beacon Chain contract has also been staked heavily, further tightening the supply situation. In accordance with the Eth2 explorer, around 6.7% or 7.9 million ETH have been locked for staking. About $28 billion value, based on today’s price of R53,600.