On May 13, the hash rate was still around 170 exahashes per second (EH/s) and a few days ago it even fell below 90 EH/s.
That has to do with the fact that China has been cracking down on the bitcoin mining industry in recent weeks. Several regions that were previously popular for miners have now completely banned it. However, this not only has a negative effect on the hash rate of Bitcoin but also that of Ethereum (ETH).
According to data from Etherscan and YCharts, Ethereum’s hash rate had skyrocketed this year. On January 1, the hash rate was still around 300 terahashes per second (TH/s) and on May 20 it reached a peak of 644 TH/s. Since then, the Ethereum hash rate has also fallen sharply and last week this decline started to accelerate. On June 25, the hash rate will be 481 TH/s, which is a decrease of about 25% in a month.
The decrease in the hash rate somewhat corresponds to the decrease in the prices. Ether prices reached an all-time high (ATH) of $4,350 on May 12 and dipped to $1,720 this morning, the lowest since late March.
However, the hash rate of bitcoin is now slowly rising again. This may have to do with the fact that some miners have already moved abroad, a large mining company recently left for Kazakhstan. Ethereum’s hash rate may also start to rise again in the coming days, but a full recovery could take several months. Kevin Zhang of Foundry recently warned about this.
Ethereum is currently transitioning from a Proof-of-Work (PoW) system to a Proof-of-Stake (PoS) system with Ethereum 2.0. The network will then no longer need miners at all.