The figures show that the miners of BTC have intensified their activity in the last few months, while the ETH hashrer has fallen along with the price of the currency.
The cryptocurrency market has suffered a decline of 70% more than its December 2017 peak. Although driven by a massive correction of the price of Bitcoin (BTC), the downward trend did not influence the miners' interest in the original cryptocurrency. On the contrary, in the last few months the mining of BTC has increased, according to new market research data. The figures also show that Ethereum (ETH), the second largest cryptocurrency by market capitalization, is undergoing a sharp decline in mining, raising concerns about the future of the network.
BTC hashrate doubles since May
Sam Doctor, a quantitative strategist of the market research firm Fundstrat Advisors, said in a Twitter post on Friday that the hashrate of the Bitcoin network had almost doubled May, from 28 EH / s [quintillion hashes per second] to 57 EH / s.
Doctor's analysis also showed that the break-even cost of a BTC is now $ 7,300 compared to $ 6,000 in May. This calculation includes the cost of depreciation of mining equipment and suggests the "fair price" of Bitcoin. Given this information, the cost of extracting a BTC is approximately 12% higher than the current currency price of approximately $ 6,300.
The bitcoin mining and other cryptocurrencies require the hash power, which measures the difficulty of finding new blocks and extracting the coin. If more people are extracting Bitcoin, the hashrate (and therefore the difficulty level) increases and vice versa. The increase in the level of extraction could come from optimized ASIC platforms and new incoming farms.
The elevated hashrate is a positive indicator, since it means that the cryptocurrency blockchain network is stronger and more resistant to attack. Increasing difficulties in the mining sector, particularly between the bearish sentiment of the cryptographic market, also indicates the conviction of miners that BTC will appreciate in the future. However, it is difficult to estimate if the miners are selling immediately to cover costs or accumulate coins.
ETH Hashrate plunges 20% in the last month
And while the miners' willingness to continue extracting Bitcoin despite the fall in prices seems undeterred and even more robust, the Ethereum network is undergoing a huge decline in his hashrate.
According to data from etherscan.io the ETH hashrer collapsed by 20% in the last month, from 294 TH / s to 246 TH / s. By bringing cryptocurrency mining to its February levels, the decline is the biggest in the last year and perhaps even after the birth of the currency in 2015.
The Ethereum network showed a series of problems in recent weeks, weighing on digital evaluation resources. In the past month, the ETH price has dropped from around $ 400 to a minimum of $ 167 before reaching the current level of about $ 200. The sliding price may be the reason why miners are moving away from the grid, as they are reaching the cost of the production plan.
And while there have recently been suggestions that efficient ASICs have been developed for ETH, hashrate data does not support voices. The Fundstrat figures presented above show that in Bitcoin, where a number of new efficient ASICs were shown, the hashrate jumped despite falling prices of coins.