Why is ETH becoming increasingly difficult to dig (why has ETH been digging less and less recently)

08/04/2023 02:04 • Tech Trends • 59 views

ethWhy is it getting harder to dig? Editor’s note: This article is from Babbitt Information (ID: bitcoin8btc), authored by Kyle, authorized by Planet Daily

In the past, there have been a lot of transactions on the Ethereum network, but why is it more and more difficult to find ETH At present, the price of ETH has dropped below $3. If we look at the current market situation, the current price of ETH is around $1 due to the high cost of gas. Although this is good news for users, it is not a bad thing for miners and investors, as they need to pay a large amount of gas fees to maintain normal network operation time, and can even carry out arbitrage operations in other currencies. These issues are all caused by the price fluctuations of ETH. When people use Ethereum, they hold a large amount of Cryptocurrency in their wallets, thus increasing their liquidity demand; However, once ETH starts to decline significantly, they will be immediately consumed

In order to solve the above two problems, some people proposed two solutions. One is to let miners deposit their Cryptocurrency in their wallets and retrieve some assets. The other is called “burn”. That is to say, as long as you have a new ETH address and a corresponding balance, you can continue to receive ETH as a reward This method is similar to traditional centralized exchanges, where users only need to send a small transaction to the trading platform to obtain profits. This means that if users want to redeem the value of their tokens through their own account, they need to withdraw a certain amount of newly issued tokens or funds from the exchange. So we often hear the word ‘destroy’. In fact, if you put your Bitcoin in your wallet to exchange for ETH and then sell it, it will automatically generate income

However, according to the recent research report, about 20% of the active wallets in the Ethereum ecosystem do not have enough ETH stored in the custody services – such as Coinbase, Kraken and other exchanges. However, as more wallets appear, the funds in these wallets may also decrease as they may reconfigure their administrator keys to save them

In addition, the development of Ethereum 2.0 deposit contracts is moving towards a more ambitious direction. The Ethereum core team has been trying to find new ways to improve the Ethereum blockchain, so as to achieve a more efficient off chain execution environment. The plan aims to enable the Ethereum community to better understand how to use existing technologies and how to build its smart contract

Why ETH has been digging less and less recently

Editor’s note: This article is from BlockBeats (ID: blockbeats), reprinted by the Daily Planet with authorization The growth rate of ETH mining is faster than that of BTC. Ethereum currently has transaction costs worth more than $2 billion, but its usage is not that high According to Etherscan’s data, nearly 10000 new ETH addresses have generated approximately $10 million in new transactions every day in the past year. However, due to the small number of new wallets, some addresses withdrew funds from the exchange. Therefore, if holders wish to retain their assets, they can choose to deposit this money into a wallet called “Stacked” At the time of writing, over 100000 new ETH addresses have been sent to this wallet. Although some of these addresses have already received some tokens and other types of ETH, such as BCH, LTC, etc. But as users continue to increase their access to the project, this trend may continue Although many ETH wallets are now providing users with functions that support ETH transactions, in reality, less than a small number of customers are attempting to make deposits or withdrawals. For example, in the past year, about three quarters of users have been paying $100 for a transaction, while others have begun to accept USDT as a Medium of exchange

As the examples listed on Etherscan suggest:

“If you want to get some ETH, you should put them in your wallet,” said a Ethereum developer, “You must use your ETH to get it.”

In addition, it is speculated that many wallets plan to use Ethereum as collateral to borrow from Ethereum, because they may need to repay the loan However, if we assume that we are not considering any additional investments now, or if we really want to go long on ETH, that would definitely be a wrong idea. “If you plan to sell some assets to exchange for another Cryptocurrency (including ETH) – and cannot cash it immediately, you can put it in another wallet.”, The English copyright belongs to the original author. For Chinese reprints, please contact the editor.

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Why is ETH becoming increasingly difficult to dig (why has ETH been digging less and less recently)

Why ETH has been digging less and less recently

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