Ethereum’s hash rate crash by 20% following China’s crypto mining crackdown

While several miners have been badly hit by China’s decision to crackdown on mining operations, is also feeling the heat. The total hash rate of the Ethereum network has witnessed a sharp decline over the past month, recording a particularly steeper drop in the past two weeks.

Data on Etherscan.io reveals that the network’s hash rate was on an upward trajectory since January 2020. It eventually reached a peak value of around 643 terahashes per second (TH/s) on May 20. However, the network’s hash rate began dropping in late May, coinciding with a comment from the Chinese State Council meeting about cracking down on “Bitcoin trading and mining activities.”

The singular comment from the memo kick-started a cloud of uncertainty among Chinese miners and the entire crypto community. Since then, the crypto market has struggled to recover from the comment, which has now metamorphosed into an actual crackdown.

Ethereum’s hash rate remained relatively constant for about two weeks after China’s announcement in late May. By June 9, it began to drop sharply following an order from the Xinjiang province asking officials in the Zhundong economic development zone to immediately shut down all “virtual currency mining farms.” This was followed by similar crackdowns from the Sichuan and Qinghai provinces in the weeks to come.

Continue reading on BTC Peers

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

×