8.8 C
Manchester
September 18, 2020
Image default
Altcoin

15,000 ETH in two weeks: accumulation continues as long as miners maintain HODLing

Launch of ETH 2.0 (and staking) is getting closer and closer, exciting miners and users

Recent data indicates that Ethereum miners prefer to keep their coins extracted and have increased their balance in recent weeks. At the same time, the number of ETH addresses containing 100,000 to 1,000,000 coins increased by almost 5% in June alone.

Due to the current proof of work (PoW) consensus algorithm that Ethereum employs, the network relies on miners to use their time and processing power to solve cryptographically difficult puzzles. If successful, miners add blocks to the Ethereum blockchain, which happens every 15 seconds on average.

In exchange for their efforts, miners receive rewards paid in ETH and fees associated with any confirmed transaction, which are sent to Ethereum’s linked portfolios.

Since mining requires the use of powerful devices that use a lot of electricity, miners have specific costs. Typically, they sell parts of the rewards they receive to cover those costs.

Lately, however, ETH miners keep most of their coins instead of selling them, according to data from the monitoring company Santiment. She explains that “Ethereum miners have collectively increased their balance by 15,000 ETH in the past two weeks”.

Explorations of Ethereum miners and ETH whales. Source: Santiment

Unusually high rates connected?

It is worth noting that two particularly abnormal Ethereum transactions took place at extremely high rates during June. Both, transmitting the value of 0.55 ETH and 350 ETH, respectively, had to pay the same fee of 10,668 ETH (worth around US $ 2.6 million at the time).

Finally, the victim was a small South Korean P2P exchange called Good Cycle. After waiting days for the sender to contact, the two mining groups that received the fees decided to allocate them among their respective miners.

It is not clear at the moment whether these extraordinarily high rates have been included in any way in the data above and whether they impact the increase in the mining balance.

Rising Ethereum whales

Santiment’s chart also illustrates another increase for Ethereum holders. More precisely, he pointed out that the number of addresses containing between 100 thousand and 1 million coins “has risen almost 5% since the beginning of the month”.

Other ETH addresses are also increasing lately. Portfolios with at least 0.1 ETH have recently recorded an all-time high, exceeding the three million mark. Since the beginning of 2020, the number of these addresses has increased by almost 11%.

In addition, non-zero ETH addresses have skyrocketed 350% since January 2018. It is worth noting that, during this period, the asset’s price fell 85%, but investor interest increased.

By adding essential developments from Ethereum to the above data, a recent analysis concluded that the price of ETH has been “significantly undervalued” for a while.

Source: CryptoPotato

Related posts

Maker (MKR) rises 50% in 24 hours after Coinbase Pro listing announcement

Anupreet Kaur

Bitcoin Cash: what effect will the first halving have?

Anupreet Kaur

Uniswap Token (UNI) values ​​300% after listings on Coinbase and Binance

Anupreet Kaur

Leave a Comment