Ethereum miners began to migrate to other Proof-of-Work coins after the network switched to the Proof-of-Stake consensus mechanism. But this caused them to earn less profit.
Within 24 Hours of the Update, Ethereum Miners Are Rapidly Losing Power
ETH It has become increasingly difficult for miners to earn money after the update.
Because too many miners switched to other coins, reducing mining profitability.
ETH, the world’s second largest blockchain network, switched systems from Proof of Work to Proof of Stake earlier yesterday to improve efficiency and reduce energy consumption.
However, the update in question, called Merge, revealed that miners are no longer needed to secure the network.
“GPU mining ended less than 24 hours after the update,” said Ben Gagnon, head of mining at Bitcoin miner Bitfarms (BITF).
Ethereum Classic (ETC) and Raven (RVN) The computational power used to mine PoW coins such as Merge doubled in the hours after the Merge took place.
However, along with the increased transaction speed, the increased difficulty also lowered the likelihood of miners to successfully mine a block and receive a reward.
According to data from Minerstat, the mining reward for an Ethereum Classic block was approximately $0.70 approximately 24 hours ago, while in the last hour this reward has dropped to approximately $0.11.
Similarly, RVN miners were able to earn $1.77 per block 24 hours ago, but in the last hour that figure has dropped to around $0.05.
“As we suspected, a large number of ETH miners have switched to ETC,” Ethan Vera, director of mining services companies Luxor Technologies, said in a statement yesterday.
*Not investment advice.
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