Over the past year, Ether (ETH) has increased in value to the point of significantly outperforming (BTC) in terms of profitability. The rise of has made mining on their network more lucrative over time. This seems to have led to more miners, which has caused the hash rate of the network to expand.
The Ethereum hash rate has reached a new all-time high, approaching record levels of 1.11 PH/s according to data from Glassnodes on January 27. The previous high was previously reached on January 13, when the price of ETH fell from $4,460 to $3,160.
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Source: Glassnodes When the hash rate increases, it indicates that more nodes are joining the network, and that the network is becoming more decentralized. As a result, this increase helps solidify the security of the blockchain. Therefore, if the hash rate is too low, it can be detrimental to the network as there would be fewer nodes, leading to slow transactions and less security.
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