Here is a chart that shows the trend in the Ethereum mining hashrate over the last few years.
As you can see in the above graph, the Ethereum mining hashrate has taken a hit recently, falling down to just 862 TH/s.
This is more than a 10% drop from the high that the metric observed last month. The quant notes that there are a few reasons behind this trend.
The first factor is the obvious shrinkage in miner revenues because of the latest crash in the cryptocurrency’s price.
Miners pay their running costs in dollars so the USD value of ETH is more relevant to them, which has gone down almost 40% over the last 30 days.
The second reason is the increased operating costs. The ever-rising electricity prices are bound to have affected miners as well.
And lastly, the upcoming merge with the proof-of-stake (PoS) network means Ethereum miners have a time limit to get back an ROI.
These factors have lead to mining becoming unprofitable for some miners, and as the drop in the hashrate suggests, they are selling their rigs recoup some of the costs.
Ethereum’s price floats around $1.1k, up 9% in the last seven days. Over the past month, the crypto has lost 40% in value.
The below chart shows the trend in the price of the coin over the last five days.