Cryptocurrency

Explosive increase in the Hashrate of Ethereum can boost the price of the Ether

After the platform Ethereum had a saturation in the transaction fees, the criptomoneda seems to have stabilized. And is now the Hashrate has an explosive increase. Some analysts consider that this event can boost the price of the Ether.

In the midst of the pandemic, the interest for cryptocurrencies has increased exponentially. For this reason, renewed events in the platform crypto have begun to be seen.

And in this case, it was again the platform of Ethereum which witnessed an explosive moment.

The increase in the Hashrate of Ethereum

The new data Glassnode and Etherscan show that the Hashrate of Ethereum (ETH) has risen to a maximum of 20 months. And this has led to some operators optimistic to suggest that the price of Ether will continue to rise to new highs in 2020.

It is important to remember that the Hashrate, or the rate of hash, it is one of the most important data to take into account when operating in cryptocurrencies.

Since the Hashrate is a competition. Which lead can be a income truly significant to the day.

This way, you can better understand why the explosive increase in the Hashrate of Ethereum seems to be strongly influenced by the rapid growth of users.

Coupled with this also is the growth of the sector of Finances Decentralized (DeFi) and, which round the 201.000.000 GH / s, a level not seen since 2018.

The Hashrate of Ethereum has an explosive increase. Some analysts believe that this may boost the price of the Ether. Source: Etherscan.io

In recent weeks, the demand of Ether has increased markedly, and, since mid-June, a growing number of users began to use platforms DeFi, which caused the network Ethereum will get saturated.

In consequence, it is able to observe that the transaction fees are congestionaran alike.

These are positive news for Ethereum?

The increase in the rate of hash, the price of Ether, and the growth rates indicate that the activity of users on the platform Ethereum are increasing.

In this way, these data show that the fundamentals of Ethereum have been strengthened.

This competition on the platform tends to lead to higher rates. Especially when the interest is increasing, which increases the income of the miners.

An increase in income would force more miners to mining in Ethereum, which would lead to an increase in the hashrate. And this event, according to some analysts, could boost the price of the Ether.

Ether surpasses Bitcoin in their rates

In the last few weeks, the madness around Uniswap and the new protocols DeFi, such as Yam Finance, took to the rates of Ethereum to overtake Bitcoin.

So, he said Cryptowat.ch, a provider of market data criptos, property, Kraken Exchange, through a tweet:

Some skeptics argue that the higher rates in the network Ethereum negatively affect the users and complicate the user experience.

However, most analysts suggest that the increase of the rates indicates that the activity of the user in the network is increasing and, as a result, we observed this explosive increase in the rate of hash.

These signs are healthy, and this is expected to continue to provide events of this nature.

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About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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