The Bitcoin hashrate increased over the weekend, allowing some miners to rejoin the competition following the increase in mining difficulty after the halving event.
Bitcoin Mining Difficulty Down By 9%
The Bitcoin hashrate surged to 120 Exahash over the weekend, leading to a decline in the mining difficulty and allowing more miners to rejoin the Bitcoin network. As the protocol difficulty of the Bitcoin network dropped by more than 9% on the 4th of June, this gave miners who had shut down their operations a chance to reopen and join the competition once more.Famous Trader
According to data obtained from the Bitcoin (BTC) research and analysis firm, Glassnode, blocks on the Bitcoin network are now mined at a faster rate, and this is the highest level experienced since July 2019. In that month, the performance of Bitcoin spiked, leading the price to almost reach the $13,000 mark on cryptocurrency exchanges.
Glassnode tweeted that at the current rate, more than eight blocks per hour are produced on the Bitcoin network. Data showed that the decline in difficulty experienced on June 4 was the seventh-largest difficulty drop of the entire network’s existence and the fourth negative decrease so far this year. The decline was around -9.29%, and almost right away, the hashrate of the Bitcoin network started increasing positively.Famous Trader
Satoshi Nakamoto designed difficulty drops and increases as part of the Bitcoin system. The Difficulty Adjustment Algorithm (DAA) alters after every 2016 blocks. With blocks mined at an average of 10 minutes, the DAA either increases or decreases every two weeks or so.
Impact of the Halving Event
Following the halving event on the network in May this year, the hashrate dropped drastically, making it tough for some miners to continue with their operations. The data from Blockchain.com shows that the hashrate on the Bitcoin network dropped to a low of 90 exahash per second (EH/s) on the 26th of May. Since then, the hashrate has been steadily increasing, but the DAA decline on the 4th of June accelerated the increase and made it easier for some miners to resume operation. Prior to the halving, only 17 mining pools were hashing away at the Bitcoin network, but the number has now increased to 32 pools.
On the 5th of June, the hashrate of the BTC network surged to 109 EH/s, with the figure spiking to 120 EH/s on June 7, 2020. The price of Bitcoin has been struggling to surpass the $10k psychological point, as it has been trading just around the $9,500 mark over the past few days. The BTC price has been down by 1.8% over the past 24 hours, with the price of a single Bitcoin trading between $9,425 and $9,550. Furthermore, the total market cap of the cryptocurrency market, comprised of more than 5,500 coins, is around $270 billion. Bitcoin still remains the most popular as it has a 64% dominance and a market cap of more than $170 billion.