Ethereum: network usage at its highest level and hashrate on the rise
Ethereum

Ethereum: network usage at its highest level and hashrate on the rise

By Emanuele Pagliari - 18 Sep 2019

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In the last few days, Ethereum has been attracting attention, in part due to the significant growth of its value, which in little more than 48 hours has increased by about 12%, in part because the network has recently achieved its usage record, as well as having triggered a slow but steady growth of the hashrate.

Precisely in these last hours, one of the key parameters related to the use of the Ethereum network has recorded its maximum value. It is the GAS of ETH, a parameter related to the activities that are performed on the decentralised network of the cryptocurrency: when performing a transaction with ETH, an ERC20 token or an operation within a smart contract it is necessary to use GAS to pay the network fees.

Vitalik Buterin recently proposed to increase the GAS limit to temporarily address the problem of congestion in the ETH network. As evidence of what has been recorded in recent days, in fact, the ETH network is being used increasingly and, apparently, it is not all attributable to the Tether (USDT) stablecoin at which many pointed the finger.

Looking at the chart taken from Etherscan it is possible to notice that on Tuesday, September 17th, 2019 the threshold of 50 billion GAS units used was reached, a value never reached before. Statistics on the percentage of network usage also confirm the recent peak of activity, which has brought the ETH network to 96% of its capacity.

Ethereum network: 20% of transactions come from Tether

Analysing the peak of use, it emerges that the main utiliser of the ETH network is not the Tether stablecoin, despite the fact that the smart contract of the USDT ERC20 token has managed to reach a peak of 20% of all the fees paid to the network.

In recent days there has been a peak of activity in several ERC20 smart contracts, while the regular ETH transactions have suffered a general decline, making room for the ERC20 token movements and the operations of the various smart contracts.

 

When looking at the transaction charts, only 30% of the transactions executed concern the ETH currency, whereas USDT has recently reached a volume close to 25% of all transactions performed on the Ethereum network.

The remaining 45% of transactions, on the other hand, derive from smart contracts, most of which are closely linked to DeFi.

 

The Ethereum hashrate is also growing slowly

Not only transactions and smart contracts, Ethereum’s hashrate is also slowly recovering, continuing the growth trend undertaken in the first part of the year.

In fact, as August approached, the slow recovery had come to a halt, with a slight correction of the hashrate to the levels of July 2019. In September, on the other hand, the value of the hashrate slowly started to rise again, up to the current values, equal to the maximum of this year.

Despite these timid, encouraging signs, the hashrate is still well below the peak of 295 TH/s recorded in August 2018.

Emanuele Pagliari
Emanuele Pagliari

Telecommunications engineer with a strong passion for technology. His adventure in the world of blogging started on GizChina.it in 2014 and then continued on LFFL.org and GizBlog.it. Emanuele is in the world of cryptocurrency as a miner since 2013 and today he follows the technical aspects related to blockchain, cryptography and dApp, also for applications in the Internet of Things.

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