- Ethereum miners have also been significantly impacted by China’s BTC crackdown.
- ETH itself has seen a sharp decline over the past few weeks.
- The Sichuan government followed Xinjiang’s lead and issued a similar order on June 18.
Ethereum, the second-largest blockchain network by market capitalization, has also seen a visible drop over the past month. Ethereum has had a steeper decline, especially in the past two weeks since China’s high-level crackdown on bitcoin trading and mining activities happened.
Looking at Etherscan.io, the data shows that the network’s hash rate was on an upward trend. This was before reaching a recent top of about 643 terahashes per second (TH/s) on May 20. That’s the time when the Chinese State Council released a memo from a meeting about cracking down specifically on minings.
Still, two weeks after May 20, Ethereum’s network hash rate continued relatively steady at the 600 TH/s level. However, it started to experience a sharper drop after June 9. It happened when the Xinjiang government issued an order to cut energy supplies to virtual currency mining farms.
Moreover, the Sichuan government followed Xinjiang’s lead and issued a similar order on June 18. As expected, this led to most mining farms in the top two mining regions suspending their operations.
Ethereum’s network hash rate has now dropped below the 500 TH/s level, translating to a 20% decline. In comparison, Bitcoin’s total hash rate has fallen below 100 exahashes per second, down nearly 50% from its recent all-time high.
Furthermore, the hashing power connected to Hangzhou-based Sparkpool — once the biggest Ethereum mining pool by real-time hash rate — has declined from around 147 TH/s a little over a week ago to right now 104 TH/s.