Hash rates are one of the biggest determinants of strength in cryptocurrency networks. Technically, a crypto network is safer if the hash rate is high. Ethereum, the second-largest cryptocurrency after Bitcoin, has been seeing its hash rate declining over the past few months.
In fact, it has fallen by 42% since August 2018, in data presented by analytic agency, Long Hash. The level in August of last year was at a record high, but has fallen significantly.
Ethereum has also been suffering in terms of value, as it is vulnerable to speculative attacks like all other cryptocurrencies in the past few months.
Chart of the day: Hash Rate against mining rewards for Bitcoin and Ethereum. With how correlated these have been in the past, are we due a significant drop in Ethereum Hash Rate? #Bitcoin #Ethereum pic.twitter.com/Yew3Ir9wRC
— ListedReserve (@listedreserve) July 25, 2019
The mining rewards for blockchain miners have also reduced, explaining partially why the hash rate is reducing. Unfortunately, this implies that the network is no longer as secure as it used to be, which spells even worse fortunes for Ethereum’s value, speed, and appeal.