After the Ethereum platform had a saturation in transaction fees, the cryptocurrency appears to have stabilized. And now the Hashrate has an explosive increase. Some analysts believe that this event may in turn boost the price of Ether.
In the midst of the pandemic, interest in cryptocurrencies has increased exponentially. Therefore, renewed events on crypto platforms have begun to be seen.
And in this case, it was again the Ethereum platform that witnessed an explosive moment.
The rise of Ethereum’s Hashrate
New data from Glassnode and Etherscan show that Ethereum’s (ETH) Hashrate has risen to a 20-month high. And this has led some optimistic traders to suggest that the price of Ether will continue to climb to new highs in 2020.
It is important to remember that the Hashrate, or the hash rate, is one of the most important data to take into account when trading cryptocurrencies.
Well, Hashrate is a competition. Which leading it can mean a truly significant income per day.
In this way, it can be better understood why the explosive rise in Ethereum’s Hashrate seems to be heavily influenced by the rapid growth of users.
Added to this is the growth of the Decentralized Finance (DeFi) sector, which is around 201,000,000 GH / s, a level not seen since 2018.
In recent weeks, the demand for Ether has increased remarkably and, since mid-June, a growing number of users started using DeFi platforms, causing the Ethereum network to become saturated.
Consequently, transaction fees could be observed to be equally congested.
Is this positive news for Ethereum?
The increase in the hash rate, the price of Ether, and the increase in fees indicate that user activity on the Ethereum platform is increasing.
In this way, this data shows that Ethereum’s fundamentals have strengthened.
This competition on the platform tends to lead to higher fees. Especially when the interest is increasing, causing the miners’ income to increase.
An increase in revenue would force more miners to mine Ethereum, leading to an increase in the hashrate. And this event, according to some analysts, could boost the price of Ether.
Ether outperforms Bitcoin in its fees
In recent weeks, the craze around Uniswap and new DeFi protocols, such as Yam Finance, led Ethereum’s fees to overtake Bitcoin.
So it clarified Cryptowat.ch, a crypto market data provider, owned by Kraken Exchange, via tweet:
Some skeptics argue that higher fees on the Ethereum network negatively affect users and complicate the user experience.
However, most analysts suggest that the increase in fees indicates that user activity on the network is increasing and this explosive increase in hash rate was observed as a result.
These are healthy signs, and this is expected to continue to bring events of this nature.