Ethereum miners have pushed the network’s computing power to a new high. On the 6th of October, the Ethereum network’s hash rate broke and surpassed 250 terahashes per second and was up by 80% since the beginning of the year. This was noted by the on-chain analytics provider Glassnode.
The hash rate was observed to growing consistently for the past several months. With the explosion of decentralized finance [DeFi] activity coupled with stablecoin growth, the Ethereum network witnessed months of high volatility with respect to key metrics. And the latest one being its hash rate breaking record highs can be seen as a major factor that could drive the coin’s price.
In September, when DeFi hit its peak, the miners on the network were estimated to have earned over $166 million in transaction fees while Bitcoin miners earned only $26 million from fees during the same period. Earnings from transaction fees, however, took a plunge recently as the average gas fees declined by more than 70% since peaking at $11.60 on the 17th of September to around $3 in October.
Besides, the last time Ethereum’s hash rate was hovering close to this level on the 9th of August 2018 when the figures stood at 246 Th/s this was primarily driven by the popular DApp CryptoKitties reaching its peak. The coin was valued at around $287 shortly after which it steadily declined to under $100 by the end of that year.
Higher the hash rate, the safer the network
The growing number of miners on the network essentially depicted a sentiment of confidence among market participants. Furthermore, a higher hash rate is also suggestive of overall positive health and that the network security is at the highest level it has ever been from potential 51% attacks.
In related news, TWJ had earlier reported that Ethereum Classic [ETC] had suffered a 51% attack for the third time in the month of August this year. During this reorganization of over 7000 blocks occurred on the network which corresponded to approximately two days of mining.