ETH held by miners hits five-year high

08 Oct 2021

The amount of Ethereum held by miners has hit all-time highs in USD terms, as they remain unwilling to sell.

Levels of Ethereum – the world’s second largest cryptocurrency after Bitcoin – have hit the highest amount since just after the network was launched five years ago. When converted into U.S. Dollars, the Ethereum balance reaches a record high of $1.85 billion, as per data from analytics platform Santiment.

Since July 2016, the now record figure of 532,750 ETH is the largest balance held by miners. This is equivalent to 0.45% of the total circulating supply of Ethereum – currently at 117.8 million ETH, reports Cointelegraph.

Moreover, the Ethereum hash rate declined during the miner departure from China, as did Bitcoin’s. At the end of June, Ethereum's hash rate fell to 477 TH/s, but has since recovered over the last three months and soared to new highs. The rate is currently up 150% since the start of 2021.

“This tells us that not only was the reaction to the China crackdown exaggerated, but miners also view the latest upgrade as an overall boon for ETH that outweighed the con of its miner reward reduction,” said Kraken crypto exchange.

Last month, Ethereum miners had started to hold on to Ethereum after the London hard fork at the beginning of August. Miners were predicting additional price hikes following the launch of EIP-1559, according to findings from Kraken.

“ETH accumulation was stagnant for most of the summer before picking up speed in July in spite of ETH price trending lower,” the Kraken report reads.

“However, ETH accumulation amongst miners really took off after EIP-1559 as they likely saw the disinflationary effects of the upgrade to drive up price.”

When the upgrade went live on 5 August, 473,120 ETH worth around $1.7 billion had been burnt, as per data from Ultrasound.Money.