Key Takeaways
- Ethereum miners now retained up to US$1.9 billion in Ethereum.
- Hoarding miners have up to 532,750 ETH stowed away.
- Ethereum burnt so far is pegged at 475459.70ETH, meaning that figuratively, US$1,733,383,428 worth of Ethereum has gone up in flames.
The current price for Ethereum is now at a whopping $3,480. This value is the highest the coin has gone in the past 14-16days. However, it is worthy to note that the balances from miners have continued to overshoot.
However, these Ethereum miners, however, following an update from an on-chain analytics platform called Sentiment, are very reluctant to sell their tightly held ETH.
According to Sentiment, Ethereum miners have now held up to US$1.9billion worth of Ethereum with a greater value (up to 532,750 ETH) being stashed away.
This value is the largest and highest hoard of ETH stashed away by miners since July 13, 2016. With about 117.8 million ETH total in circulation, the amount stashed away by miners is approximately 0.45 percent of the total supply.
These indices are an indication that Ethereum miners are hopeful that there will be a likely increase in the price of ETH and are thus HODL(ing).
Generally, miners in the crypto space, be it Bitcoin, Litecoin, Ethereum, or any solid currency, have a business model that involves regularly selling off assets to solve basic problems such as hardware costs, light bills, and so on.
There was a reported dip in the bandwidth of Ethereum and Bitcoin during the departure of miners from China.
This pace of growth has previously shown how safe or healthy a network is, and for Ethereum, it plummeted to around 477 terahashes per second (i.e., 477 TH/s) in late June.
Despite this decline in hash rate, the coin has regained its footing in the previous three months and is now fully recovered, with a 150 percent increase in value since the beginning of the year.
Also, in recent weeks, top-rated Ethereum mining pools in China (SparkPool and BeePool) dropped off the wagon and suspended their operations.
Still, surprisingly, this pull-out did not cause any noticeable drop in the hash rate as on Tuesday, the coin struck 745 TH/s, which is an all-time high.
Another recent research by Bloomberg Analyst Mike McGlone has shown that despite the surge in Ethereum mining and hoarding by miners, the miners are playing on borrowed time as the 2nd rated blockchain is about to become non-mineable due to the coin’s protocol’s EIP-1559 upgrade introduced in August.
This upgrade has turned Ethereum into a deflationary asset as it reduces supply and automatically burns the fees used to do business on the network.
The research shows a current Base fee of 83.8 Gwei with an average miner tip of 2.00 Gwei. Since this Ethereum burn update, the total amount of Ethereum burnt is pegged at 475459.70ETH, meaning that figuratively, US$1,733,383,428 worth of Ethereum has gone up in flames.
It is also worthy to note that currently, almost a 7.9million ETH is vaulted for staking, which values about 6.7% of the total circulating supply of Ethereum.
There is a scheduled hardfork upgrade for October 27 known as the Altair. Accordingly, this upgrade is like a warm-up set to prepare developers for an era of proof-of-stake merging coming up.
