Ethereum hash rate has hit a new all-time high as network activity surpasses previous records.
According to blockchain forensics firm Glassnode, Ethereum hash rate has increased tremendously compared to the beginning of the year. Furthermore, research indicates that Ethereum miners have never been as active as they are currently.
Ethereum hash rate hits ATH
In the wake of the DeFi hype that has been gaining traction this year, Ethereum miners have pushed the network hash rate to a new all-time high level. According to Glassnode’s research, the network hash rate has risen above 250 Tera hashes per second (T/s) and shows a net increase of 80 percent since the start of 2020.
This also means that network security is at the highest level it has ever been. To attack a blockchain network, one needs to have 51 percent hash power to attempt a network takeover. However, a high hash rate means that the attacker would need to accumulate a greater hash power before launching an attack.
Hash surge and the DeFi hype
Ethereum hash rate was surging in early 2020 until the Black Thursday event occurred. Due to the price drop, many miners slowed operations till May when the price recovered. However, May also saw a rise in transactional activity across scams and Ponzi schemes.
The DeFi hype was a major factor behind the surging hash rate. DeFi has gained traction due to its high profitability and according to DeFi Pulse, the total value locked in DeFi smart contracts now surpasses $10 billion. With projects like Yearn, Uniswap, and Compound, DeFi took spotlight and attracted investors.
This success enabled driving the price of Ether (ETH) to higher levels and can now be seen translating to its hash rate as well.
This may be the last time Ethereum miners are able to earn as the network prepares for its shift to a proof-of-stake (PoS) network. While it is unknown when that might happen, the network is conducting testnet launches, and we might soon hear about the Ethereum 2.0 mainnet launch.