The Future of Ethereum Miners Is Uncertain! – The Problem May Grow

Ethereum Since the exact date for when the merge will take place became unpredictable, miners have had a hard time running their operations. Although the ‘difficulty bomb’ that will emerge with the merge has been delayed many times in the past, it is possible to say that similar effects have emerged. As we have reported, all these developments experienced Ethereum mininghas made it difficult and continues to make it difficult. The code mechanism, known as the difficulty bomb, aims to accelerate the transition to the new ecosystem, as it focuses on periodically increasing the difficulty of existing transactions after the merge.

Since 2017, the application has been delayed six times. Recently, the next difficulty grenade schedule was set for August.

Ethereum Mining Makes Less Profitable

Meanwhile, the ETH hash rate has dropped 10% since April, making it less rewarding for mining operators. According to data from CryptoQuant, Ethereum hash rate has dropped 10% recently as profits have plummeted.


“The uncertain triple mix of low revenue, rising operating costs and the upcoming merger has caused some miners to stop mining operations.”

It looks like this phenomenon could continue if prices drop further as predicted. ETH price had a price tag of $3,500 just three months ago, but recently broke below the $900 level.

Ethereum merge, stands out as the most anticipated update on the network. The merge standardizes a new proof-of-stake (PoS) consensus mechanism that replaces the existing proof-of-work (PoW) mechanism. With the new system, miners discover new blocks and then integrate them into the blockchain.

Ethereum is trading at $1,142, up 5.20% in the last 24 hours, according to CoinMarketCap. Net deposits on exchanges are lower than the 7-day average, an important indicator that traders expect further price drops. Also, lower deposits can be interpreted as lower selling pressure.

Ethereum fear and greed index is at extreme fear levels. This could mean that there is a widespread expectation that the Ethereum price could drop further.

You can follow the current price action here.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.

source site-7