Ethereum Hashrate Reaches All-Time High as PoS Migration Commences 

By Robert Drage February 02, 2022 In Blockchain, Crypto News, Ethereum, Mining

The Ethereum network’s hashrate has been on a steady incline since its inception but has now reached a significant milestone of 1PH/s and went on to break its previous all-time high, reaching 1.11 PH/s nearing the move to Proof-of-Stake (PoS).

During the past year, usage of the Ethereum network has increased significantly with many projects opting to build on the largest smart contract-enabled blockchain. According to recent data from on-chain market analytics platform Glassnode, Ethereum has pushed a new peak for its hashrate:

The hashrate of any Proof-of-Work (PoW) consensus mechanism specifies an estimate of how many hashes are being generated by miners trying to solve blocks. The increase in hashrate shows more computers adding power to the network, thus increasing security and decentralisation of the network.

Due to the increase in value on Ethereum, it even flipped Bitcoin (BTC) at one stage in terms of returns, making it more profitable to mine. So much so that more potential miners jumped on the mining cart to urge the increase of the hashrate.

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ETH Flips BTC Hashrate

As of late December, Ethereum overtook Bitcoin (BTC) with its improved hashrate. However, the network is scheduled to move to PoS, which will affect miners. Referred to as “the difficulty bomb”, it will essentially shut down ETH mining in the future.

ETH/BTC hashrate five-year chart. Source: Glassnode

In the meantime, Ethereum has released Arrow Glacier, which has slowed down the final upgrade to PoS and miners will continue as usual:

Move to PoS

As previously reported, the Ethereum Foundation has decided to change the name of ETH2 to ‘Consensus layer’ and adjust all associated terminology in order to improve clarity for new users and reduce scams.

There have also been pointers to what Ethereum plans to do with the miners, instead of just shutting them all down and asking them to go away. Ethereum has been achieving some major milestones, among them managing to capture US$10 billion in transaction fees in 2021.

Robert Drage
Author

Robert Drage

Robert is a freelance researcher, with a background in information science currently interested in blockchain technology and technical developments in the field.

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