- Ethereum’s mining difficulty has hit a two-year high today.
- It measures how difficult it is to find mine blocks on the Ethereum blockchain, which are needed to process Ethereum transactions.
- The increase in mining difficulty follows its soaring price.
Ethereum’s mining difficulty has now hit a two-year high.
Mining difficulty on the Ethereum blockchain rose to 3,650 terahashes at around 11:15 UTC today, its second-highest level on record, according to data from market analysis firm Glassnode.
By a hair. On August 9, 2018, Ethereum’s mining difficulty hit an all-time high of 3,651 terahashes, according to Glassnode.
Ethereum mining difficulty measures how hard it is to mine blocks on the Ethereum blockchain. Mining blocks are required to process Ethereum transactions.
The difficulty of extraction is determined by the number of active miners on the network. An increase in the computing power of the miners increases the difficulty; this ensures that the blocks are not generated at a disproportionate rate.
Ethereum’s mining difficulty has increased throughout the year but took off at the end of August, when this summer’s decentralized finance (DeFi) boom had its final hurray. Investors have plugged billions into decentralized exchanges and Ethereum-based money markets, resulting in increased activity in the Ethereum network.
The latest increase in mining difficulty follows the surge in the price of Ethereum, which topped $ 500 for the first time since the summer of 2018 and has been rising for months.
Maybe Ethereum even has Bitcoin to thank. The price of Bitcoin, the largest cryptocurrency by market cap, has risen by around $ 8,000 since the start of October, while its price was around $ 10,500.
Bitcoin mining difficulty follows Ethereum’s, although Bitcoin mining difficulty is far, far higher, at 134.57 EH / s. One exahash equals one quintillion hashes per second.
Earlier this month, Decrypt reported that Bitcoin’s mining difficulty registered the second biggest adjustment in its 12-year history, when it fell by around -16%.
But Bitcoin miners have a long way to go until Ethereum miners overtake them.