The amount of Ethereum held by miners has reached new highs in US dollar terms, indicating that they are not hesitant to sell and appear to expect further price increase.
The amount of money owned by Ethereum miners is at its highest level since the network’s debut five years ago. According to statistics given by analytics company Santiment, it is at a historic high of $1.85 billion when converted into USD.
The 532,750 ETH is the greatest balance held by miners since July 13, 2016, according to the business. The sum is approximately 0.45% of Ethereum’s entire circulating supply, which is now 117.8 million ETH.
Miners typically sell the asset on a regular basis to offset expenditures such as electricity and hardware. Miners’ hesitation to sell could indicate that they are waiting for more price hikes.
During the miner exodus from China, the Ethereum hash rate, which is frequently considered as a reflection of network health and security, fell along with Bitcoin’s.
Ethereum’s hash rate dropped to 477 TH/s in late June but has since fully recovered and rocketed to new highs during the last three months. It has increased by 150 percent since the start of the year.
Despite China-based Ethereum mining pools SparkPool and BeePool stopping operations in recent weeks, this is still the case. Surprisingly, the hash rate has remained unchanged since hitting an all-time high of 745 terrahashes per second (TH/s) on October 5, according to Bitinfocharts.
Following the London hard fork in early August, reports claimed in September that Ethereum miners had begun stockpiling the cryptocurrency.
Miners were expecting significant price hikes from potential deflationary features following the publication of EIP-1559, which burns some of the transaction fees, according to research from the Kraken crypto market.
According to Ultrasound, 473,120 ETH worth about $1.7 billion has been burned since the upgrade went live on Aug. 5.
A considerable portion of the Eth2 Beacon Chain contract has also been staked, increasing the supply crunch. Around 6.7% or 7.9 million ETH has been locked for staking according to the Eth2 explorer. At current prices of around $3,577, this equates to roughly $28 billion worth.