Miners seem to be waiting for ETH to hit higher prices as they are not willing to sell their digital assets.
Ethereum miners are in possession of a big amount of ETH that has reached new highs in US dollar terms, thus they remain hesitant to sell.
This level of ETH held by miners seems to be the highest in years, it almost compares to its launching time 5 years ago. The reason for this is Ethereum’s big value when converted into US dollars, as it has reached the culmination of $1.85 billion, on a report from Santiment, a behavior analytics platform.
This balance of 532,750 ETH is the biggest held by miners since the 13th of July in 2016. This amount is about 0.45% of 117.8 million ETH, the current sum of Ethereum’s circulating supply.
Electricity and hardware expenses are the main reasons that make miners sell their assets. This present reluctance to sell them could translate to waiting for ETH higher prices in the future.
The Speed of Mining Not Changed
The ETH hash rate, something that presents network health and security, together with the Bitcoin hash rate had a drastic fall during China’s mining ban.
Ethereum’s speed of mining, or hash rate, lowered to 477 TH/s by the end of June, but has since got back on its feet in the last three months and even reached new peaks. Right now it is up to 150% from the first months of 2021.
This is regardless of the crypto ban from the Chinese government as SparkPool and BeePool canceled operations for some weeks now and have since been out of the game. It is interesting to note that the hash rate was not significantly affected, and it hit record levels of TH/s at the beginning of October, as stated by Bitinfocharts.
The London hard fork of August encouraged miners to start hoarding the asset, informs Cointelegraph. Kraken, a US-based crypto trading platform conducted research on this, suggesting that the miners are expecting higher prices. They believe that the increase in price will result from deflationary from the launch of EIP-1559, explain experts from Kraken.
The update went live on August 5 and since then 473,120 Etherium or $1.7 billion on dollar terms have been lost, claim Ultrasound.Money.
A great amount has been staked on the Eth2 Beacon Chain contract, which only adds to the supply shock. According to the Eth2 explorer, about 6.7% or 7.9 million ETH have been locked for staking. With today’s prices of about $3,577, this gets to a value of exactly $28 billion.
Also read: Ethereum Price Prediction 2021 and Beyond – Can ETH Reach $20,000 in 2021?