The Ethereum network hash rate has been surging since the start of 2020. On October 6, the network hash rate hit a new threshold of 250 terahashes per second (TH/s), as per Glassnode analysis.
Hash rate measures the amount of computing power processing a blockchain. It is an important factor when defining the security of a network. Earlier in August 2018, the Ethereum hash rate was able to hit a high of 246 TH/s. As the craze around Decentralized finance (DeFi) continues to expand, the network hash rate is also marking new highs.
Glassnode tweeted, “Ethereum miners have pushed the hash rate to a new record in high in the wake of the DeFi hype and surging fees.”
The experts believe that for the Ethereum hash rate, it has been a decent year. Beginning the year at around 144 TH/s, the 200 TH/s mark was broken in August 2020, before consistently climbing to these unusual spikes.
PhutureDAO co-founder Charles Storry said, “The Ethereum network is going from strength to strength, with the recent increase of DeFi related activity, network usage is at all-time highs.”
Ethereum Transaction Gas Fees Dropped Significantly
As a new wave of DeFi and stablecoin has kicked off, the Ethereum transaction fees hit all-time highs in the third quarter of 2020. According to Glassnode data, Miners on the Ethereum blockchain have achieved a new milestone by earning $166 million from gas fees simply in September. Whereas, miners on Bitcoin earned barely $26 million from transactional gas fees during the same period.
However, Ethereum transaction gas fees have plummeted sharply. The market report reveals that average transaction gas has fallen to $2.98 from $11.60. In two weeks, earnings from Ethereum transaction fees have dropped by over 74%.