Miners have decided not to sell any of their Ethereum as the quantity held by them has hit a record high in terms of U.S. dollars.
The miners holding of ETH is similar to what they had when the network was launched five years back. According to Santiment’s data analysts team, the holdings together make $1.85 billion in terms of USD, breaking all records. The holding together makes a sum of 532,750 Ethereum coins.
The company reported that this amount is the largest balance the miners has ever held after July 2016. This is almost equal to 0.45% of the total ETH available (the total supply of ETH in the market is 117.8 million).
Miners typically sell the coins to offset electricity and hardware costs. The unwillingness to sell ETH signals that miners may stand up for future increases in prices.
The Hash rate of Ethereum is stable
During the miner migration after the Chinese ban together, the hash rate, which is generally regarded as a measure of the health and reliability of the network, slumped for both Ethereum and Bitcoin. In late June, the Ethereum hash rate decreased to 477 terra hashes per second (TH/s); however, it has entirely rebounded to new highs during the last three months. The hash rate is currently up by 150% since January 2021.
Despite the drop-out of mining pools in Ethereum, which are present in China, SparkPool and BeePool have suspended their activities over the last weeks. Interestingly, the hash rate has not decreased noticeably. It, according to Bitinfocharts, reached a maximum of 745 TH/s on October 5.
In September, several reports claimed that Ethereum miners tightened up the currency at the beginning of August after the London hard fork event. A study published by Kraken, the famous crypto exchange, suggests that, following the start of the EIP-1559, which brings in certain transaction fees, miners expect further price spikes from possible deflationary features.
According to Ultrasound, after the major burning event going live on August 5, supply started going down. Almost 473,120 ETH worth around $1.7 billion has vanished to control the supply.
Furthermore, around 6.7% or 7.9 million ETH is sitting locked on the Eth2 Beacon Chain contract to control the supply. As per the current market price, it is roughly equal to $28 billion.