Journalist
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- The last month has seen resurging activity in Ethereum’s Proof-of-Work network.
- This has been due to the general market rally.
The EthereumPoW [ETHW] network has witnessed a significant upsurge in activity due to the recent market rally, on-chain data has revealed.
This comes after an extended period of decline, during which demand for the chain plummeted to its lowest levels.
EthereumPoW has seen traction in the last month
A major indicator of the uptick in demand for the EthereumPoW network has been its hashrate, which has risen consistently since the 20th of November.
According to data from 2Miners.com, in the 14 months prior, the network’s hashrate had declined by 65%.
The drop in a network’s hashrate is often due to a decline in the value of its native cryptocurrency. This makes mining less profitable, leading to miners leaving the network.
Inasmuch, in the 14 months preceding the hike in hashrate, ETHW’s price had fallen by 98%.
However, since the 20th of November, EthereumPoW’s mining hashrate has grown. At 16.28TH/s at press time, it has since climbed by 52%.
Source: 2Miners.com
The steady increase in the network’s mining hashrate coincided with the rally in the value of its native coin. According to data from CoinMarketCap, ETHW’s price has grown by 70% in the last month.
Source: CoinMarketCap
As expected, the uptick in mining activity on the blockchain has also resulted in a similar uptrend in the chain’s mining difficulty.
At press time, EthereumPoW’s network difficulty was 209.59T, recording a 55% growth since the 20th of November.
Further, the total value of assets (TVL) locked by decentralized finance (DeFi) protocols housed within EthereumPoW has also increased, data from DefiLlama showed.
The uptrend began on the 22nd of November, and the network’s DeFi TVL has since gone up by 90%.
However, EthereumPoW’s DeFi TVL remained significantly lower than its October 2022 peak of $6 million at press time. The network’s TVL was $215,294 at the time of writing, logging a 72% decline year-to-date (YTD).
Source: DefiLlama
Network activity in the last 24 hours
Per data from OKLink, EthereumPoW saw an influx of new addresses in the last 24 hours.
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According to the on-chain data provider, 2469 new addresses were created on the blockchain, bringing the total number of addresses on the chain to 381 million.
However, out of the 381 million total addresses on the chain, only 9,369 were deemed to be active.
Source: https://ambcrypto.com/why-ethereums-pow-network-has-thrived-of-late/