The bitcoin network has seen a significant increase in hashrate, surpassing 700 EH/s for the first time. This marks a 6% growth in the past week, indicating a strong uptrend in mining activity. Hashrate refers to the total computational power used to mine and process transactions on the bitcoin blockchain, and this surge in hashrate highlights the security and robustness of the network.
One interesting trend to note is the dominance of publicly-listed miners in contributing to the total hashrate. Data from mining analyst Sebastian Ski shows that 12 of the top publicly traded miners accounted for almost 30% of the total hashrate in September, with a collective contribution of over 200 EH/s. This represents a significant increase in their share of the network hashrate, pointing to the growing influence of these miners in the industry.
Ski also highlights the strong performance of companies like CleanSpark, MARA Holdings, Riot Platforms, and IREN in terms of hashrate growth over the past year. These companies have seen month-over-month production growth, indicating their ability to stay competitive in the challenging mining industry. With the halving event in April reducing block rewards and increasing operational costs, miners with the lowest energy costs and strongest financial positions are likely to continue gaining market share.
In addition to the increase in hashrate, bitcoin’s hashprice has also surged to a two-month high, reaching $50 per petahash per second. This spike in hashprice is driven by the rise in bitcoin’s price to $68,000 and an increase in transaction fees. The on-chain minting of the runes protocol contributed significantly to the transaction fees on Oct. 17, further boosting mining profitability. As a result, the next difficulty adjustment is set to increase by over 4% on Oct. 23, ensuring that blocks are mined at a consistent rate.
Overall, the combination of record-high hashrate, increased hashprice, and growing dominance of publicly-listed miners points to a vibrant and competitive landscape in the bitcoin mining industry. As miners continue to navigate the challenges of staying profitable in a capital-intensive environment, we can expect to see further developments in mining technology, energy efficiency, and market dynamics shaping the future of bitcoin mining.
