Ethereum Mining Difficulty Surge to Two-Year High As ETH Price Hit to $500 Barrier

November 22, 2020 2:15 PM UTC

Ethereum mining difficulty keeps climbing up since the start of 2020. On November 21, the network difficulty jumped to 3,650 terahashes, the second-highest level ever, according to data from Glassnode.

Ethereum’s mining difficulty took a flight as a new wave of DeFi rewards incentives kicked off in the crypto sphere. Users invested billions of dollars into Eth-based DeFi platforms to make the most from large yield farming and incentives offering, resulting in a massive rush of activity in the Ethereum network.

Mining difficulty means how hard it is to mine blocks on the network. While Ethereum transactions process blocks mining is required. The number of active miners on blockchain determines the mining difficulty. A rise in computational power drives the difficulty. The recent mining difficulty hike follows the ETH price rally, which hit the $500 barrier for the first time after 2018.

The Total Number of ETH Addresses Jumps Significantly

Ethereum, the second-largest cryptocurrency in terms of market cap, continues with its growing trend. Ethereum price elevation highlights an impression of the expanded reception of the network in the field of blockchain development.

Besides the ETH price rally, more ETH addresses have been created in 2020, compared to last year. According to Glassnode, after adding an extra 14,820,771 million Ethereum addresses so far this year, the number of Ethereum addresses that hold a non-zero balance rallied to an all-time high of 49.6 million.

Although it’s simple to create a new Eth address as it does require any complicated identification verification. However, the growing figures suggest that more users are joining the network than in previous years.

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