Not only Bitcoin (BTC) but also Ethereum (ETH) saw a hashrate decline of up to over 25% from its highest level in mid -May.
Hashrate refers to the calculation for the computing power of a network, to some extent related to the price of ETH.
As assets increase in value, mining activities become more profitable while attracting mining resources to the network and increasing hashrate rates.
The main factor to this decline in hash rates is due to the Chinese government’s grip on crypto mining in the country.
On May 20, the Ethereum hashrate reached an all -time high of 585.5TH/s (terahash per second). However, in the next few weeks the record recorded a decline of 26% to a 3 -month low of 434.3TH/.
It can be said that Ethereum miners in China are quite unlucky because apart from having to comply with the government's action, they also have to bear the reduced cost of EIP-1599.
For the record, the introduction of ETH 2.0 and the network’s transition to the Proof-of-Stake (PoS) concept will result in Ethereum’s mining operations being stopped immediately.
At the time of writing, Ethereum is trading at $ 2,138.75, down 0.95% in 24 hours.
