These are interesting types for the Ethereum network. While many anticipate the launch of proper staking through ETH 2.0, miners continue to play a crucial role. As the mining difficulty hits an all-time high, the coming months will get rather exciting.
Ethereum Mining Difficulty ATH
Any Proof-of-work ecosystem needs continual support from miners to keep the network secure. Additionally, these miners allow for transactions to be confirmed by the network. While Ethereum aims to transition to staking eventually, the current reliance on mining remains in place. As the network grows and evolves, so does the overall mining difficulty, similar to Bitcoin.
It is all the more intriguing to see Ethereum’s mining difficulty ramp up. There was a recent decline on that front, making people think the interest in mining was dropping off. However, that is clearly not the case following the recent surge in difficulty. Therefore, it seems plausible to assume this trend will continue for some time to come.
The current mining difficulty is a reflection of the overall mining interest for Ethereum. It appears the current rewards from blocks and transaction fees are sufficient for many people. Offsetting costs is the priority when mining cryptocurrencies. Pocketing a profit is a bonus, although that isn’t always possible. For Ethereum miners, the current conditions appear favorable.
With ETH 2.0 just around the corner, it remains to be seen if this mining difficulty can keep ramping up. Soon, there will be a time when mining is no longer required, and the network changes entirely. However, mining will remain the default solution until the developers confirm the release date for this crucial network upgrade.
Ethereum Hashrate Continues To Climb
One reason for the mining difficulty to adjust is due to more mining power hitting the network. For Ethereum, there has been a slow and steady uptrend on this front since July 2021. More and more people are mining Ether, as its price is still favorable among other currencies to mine with a GPU.
As the network still faces high gas prices most of the time, there are good rewards to earn by miners. Currently, the fees make up over 29% of the total rewards for Ethereum miners. If more people crunch numbers and can be profitable, the mining difficulty will keep going up accordingly.