ETH held by miners hits highest number since 2016

In the U.S., the amount of Ethereum currently held by miners had reached record levels in the country’s currency.

To date, the amount being held by the Ethereum miners is at its largest since its launch. Upon conversion into the U.S. dollar, the amount had been revealed at a peak of $1.85 in accordance with the data reported by the analytics platform Santiment.

The firm reported that the ETH amount is the largest to date, at 532,750 ETH, the point reference being its peak back on July 13th, 2016. Said amount is placed at 0.45 of the entire supply of ETH currently in circulation which is 117.8 million ETH.

It is a regular practice for miners to sell their assets so as to cover expenses such as electricity and hardware costs. As such, the refusal to sell means the traders are holding out the asset for further price increases.

Meanwhile, the Ethereum hash rate had slumped during the emigration of miners from China due to the crypto crackdown in the country. Post the event, the Ethereum hash rate fell to 477 TH/s in the last chapters of June, but has yet recovered and even went up to new highs. At present, it is at 150% since the start of the year.

And this is despite the China-based Ethereum mining pools that had exited the race, alongside SparkPool and BeePool’s suspension of their own operations of late. Fortunately, no drop in the hash rate had been seen. And on the contrary, on Oct. 5th, the hash rate had actually hit an all-time high of 745 terrahashes per second (TH/s) according to a report by Bitinfocharts.

Cointelegraph, authority in all things crypto, reported back in September that Ethereum miners started holding the asset after early August’s London hard fork. Due to deflationary properties, it had been implied that miners are expecting further increases after the launch of EIP-1559 that burns some of the transaction fees.

Since the release of the upgrade on Aug. 5th 473,120 ETH amounting to $1.7 were already burnt in a report lodged by Ultrasound.Money, a site that solely tracks all ETH activities.

A huge percentage had also been staked on Eth2 Beacon Chain contract. The Eth2 explorer reports that around 6.7% or 7.9 million ETH had been effectively locked for the purpose of staking. With the price pegged at around $3,577, one is in on roughly $28 billion.