Miners holdings of Ethereum have reached all-time highs in US dollar terms, as they continue to be hesitant to sell.
The balance held by Ethereum miners is the highest it has been since the network’s inception five years ago. According to data given by analytics platform Santiment, it has reached a historic high of $1.85 billion when converted into USD.
According to the organization, the 532,750 ETH balance is the greatest held by miners since July 13, 2016. The sum represents roughly 0.45 percent of Ethereum’s entire circulating supply, which is now 117.8 million ETH.
Miners typically sell the asset on a regular basis to offset expenses such as electricity and hardware charges. A hesitation to sell indicates that miners may be waiting for more price hikes.
The Ethereum hash rate, which is generally regarded as a barometer of network health and security, dropped alongside Bitcoin during the miner exodus from China. Ethereum’s hash rate dipped to 477 TH/s in late June, but has since fully recovered and rocketed to new highs. It has now increased by 150 percent since the beginning of the year.
This is despite the fact that two China-based Ethereum mining pools, SparkPool and BeePool, have suspended operations in recent weeks. Surprisingly, there has been no discernible reduction in hash rate, which peaked at 745 TH/s on October 5th, according to Bitinfocharts.
Following the London hard fork in early August, Ethereum miners began stockpiling the cryptocurrency, according to Cointelegraph in September. According to Kraken research, miners were expecting significant price hikes from potential deflationary features following the launch of EIP-1559, which burns some transaction fees.
According to Ultrasound.Money, 473,120 ETH worth about $1.7 billion has already been burned since the upgrade went live on August 5.
A big percentage of the Eth2 Beacon Chain contract has also been staked, adding to the supply crunch. According to the Eth2 explorer, around 6.7 percent, or 7.9 million ETH, has been reserved for staking. At current pricing of around $3,577, this amounts to around $28 billion.