The latest Ethereum news show that 2020 is indeed a good year for the cryptocurrency and largest altcoin on the market. In the latest updates, we can see that the Ethereum hash rate is up by an amazing 27% this year and the blockchain has seen bigger stablecoin issuance and a growing influx of funds into the ETH-based DeFi initiatives.
We can see that the utility growth that Ethereum has seen over the past five months led the cryptocurrency to see booming demand, as more investors begin recognizing its true growing potential.
All of this coincides with the massive rise in the cryptocurrency’s hash rate – which climbed by just under 27% since the start of 2020. From a price perspective, we can see that the ETH price is seeing growth this month and the hash rate is following that growth.
Ethereum’s hash rate over the past months. (Source: Glassnode)
As the cryptocurrency news show, investors in ETH are looking for the $300 mark as the most important threshold that the dominant altcoin needs to pass. The rise to $290 from earlier this month was short-lived and happened to be followed by an intense decline that ultimately led it to lows in the sub-$100 region.
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Data from the analytics platform Glassnode indicates that the ETH hash rate has risen by just under 27% throughout the year. This led to the highest levels and the Ethereum hash rate is up by a significant amount. According to official information:
“Ethereum’s hash rate has increased by 26.8% since the beginning of the year and is at the highest level it’s been in over 7 months.”
What is also important to keep in mind is the fact that the current hash rate of 166 tera-hashes per second is still down significantly from the all time highs of 250 TH/s which were set in August 2018.
The head of crypto investments at DTC Capital, Spencer Noon, explained that there is a strong connection between the blockchain and its utility as well as the demand for ETH. He said:
There is a growing link between #Ethereum utility and $ETH demand 🚀
ETH miners have captured $3.5M in fees over the past 30 days. Below we can see that the demand for blockspace is mostly driven by stablecoins and #DeFi, which together account for >63% of fees paid. pic.twitter.com/6VKn3ATmSK
— Spencer Noon (@spencernoon) May 19, 2020
This being said, it is very important for investors to see that the Ethereum hash rate is up by 27% this year and consider what good is this going to bring to the crypto market. Based on Noon’s assessment, both of the factors will bring good news in the mid-term outlook for ETH.
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