Glassnode, an on-chain analytics firm, has recently published data stating that the Ethereum Hash Rate has reached an all-time high. There were more than 250 terahashes per second (TH/s) which is considered to be extremely rare. Since January 2020, there has been a rise of 80% and this high is coming after huge volatility in key metrics on blockchain for quite some time.
🚨 #Ethereum hash rate hits an ATH.
Ethereum miners have pushed the hash rate to a new record high in the wake of the #DeFi hype and surging fees.
It crossed 250T/s and is now up 80% since the beginning of the year.
— glassnode (@glassnode) October 6, 2020
Glassnode Believes Surge in Defi Projects Might Be the Reason
According to Glassnode, there has been a huge surge in the DeFi market and due to this, gas fees have reached a very high level. The analytics firm believes that this hitting an all-time high might be due to such a huge increase in the gas fees.
Not only this, F2Pool data shows that at present, Ethereum is highly profitable to mine as compared to Bitcoin. F2Pool calculates the mining profitability based on current revenue and deducting the cost of power at the same time. According to the mining rigs, this crypto mining pool indicates that there has been an increase in daily profit in Ethereum miners. However, this is not the case with Bitcoin mining rigs.
Ethereum Hash Rate Seen This Surge Two Years Back
This kind of increase in the Ethereum hash rate was seen two years back in August 2018 as during that time the metric has reached 246 TH/s. According to the data provided by Glassnode, in the previous month, Ethereum miners were able to make $166 million only from the transaction fees. The major reason behind this is considered to be a DeFi boom as since the past few months, this sector has been very active and people are showing great interest in it. If this has to be compared with Bitcoin, then it is not doing really well. DeFi market seems to have a major effect on the Bitcoin market but it is still the largest cryptocurrency as per its market cap.