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The 110 million ETH was mined while the social participation rate around ETH exploded

Currently, Ethereum is still using the POW algorithm, so you can still mine ETH. Previously, along with BTC, the ETH miner was quite profitable. However, with the fierce competition of large mining pools equipped with modern ETH mining, the ETH mining industry has not brought too much profit.

“The 110 million ETH has just been mined!”

Even so, the 110 million ETH has been mined!

This is an important event as ETH is moving to Proof-of-Stake. Since then, online transaction validators are no longer miners but validators that hold large amounts of ETH. ETH has no total supply limit like BTC. Therefore, prior to this event, many questions were posed. For example, are people still wondering about the maximum amount of ETH?

Besides, there are still some who wonder what causes it when ASIC is allowed to attack the network? Or, what is the use of ETH if exploited by the special interest clearly outlined in the whitepaper? This is an important milestone, but we need to have insight into this community after approaching it.

In short, people still do not believe that 110 million ETH has been mined. And the question of how much ETH in total will be mined has not been adequately answered. There are some ideas that the number will be 120 million until IceAge and switch to Proof-of-Stake.

Level high relevance of ETH community revolves around 2 highlights

ETH-related social community has been booming, with strong price performance and discussion of ProgPoW driving spikes. According to LunarCRUSH, there were a number of anomalies in social participation in the past week, including favorites, likes, comments, replies, replays, quotes, sharing and statistics. other. By analyzing this data, LunarCRUSH has recorded ETH of more than 45 million participants on the first day of this month. Even more than 57 million social interactions 24 hours later, an increase of 27%.

"ETH is the coin of the day. Get detailed information about social activities in real time next 24 hours at…

… And if you create a free account at https://lunarcrush.com, you will receive social information about all your favorite coins. "

The high level of participation around the ETH community seems to be related to two points.

eth

Ratio social participation regarding ETH | Source: LunarCRUSH

First, the price of ETH has increased by more than 20% since the end of February, far ahead of many leading cryptocurrencies. Therefore, discussing the price increase from analysts and cryptocurrency enthusiasts is a natural reaction. For example, derivative trader Sawcruhteez says that if the support at $ 232 continues to hold, ETH can sustain its uptrend.

eth

Source: TradingView

The second and most important discussion point revolves around the controversial mining algorithm ProgPoW.

Community tensions around ProgPoW

The Ethereum Foundation defines ProgPoW as a proof algorithm designed to bridge the gap between ASIC and a user's computer hardware. It proposes to change Ethereum's hash algorithm with plans to use almost every commodity hardware (GPU) and to be pre-configured for the most popular hardware used on the network.

Proponents such as co-authoring algorithm Kristy-Leigh Minehan believe that Ethereum is still GPU friendly. Minehan wants to see networks that can be exploited by multiple devices. Easy mining access is a great way to bring new people into the community.

"ETH, ALLCoreDevs started in 15 minutes. This week, only 2 agenda topics:

Cryptocurrencies: do we continue with EIP-1962? EIP just for ETH2 deposit contract curve? Left tWhat else is not? "

Meanwhile, those opposed to the system upgrade are concerned about its compatibility with existing applications and potential security implications when online. Some even argue that moving to a hard fork could cause another chain split, similar to what happened in July 2016 with Ethereum Classic.

Despite their differences of opinion, both sides agree that changing the protocol is not worth the risk of network splitting. It remains to be seen whether the upgrade will find its way into the upcoming hard fork.

Is ETH leading in 2020? Not too fast

During downtrend or correction period, the performance of altcoins mainly depends on the price trend of BTC.

If BTC starts to perform poorly due to decreasing volume and gloomy market sentiment, large altcoins tend to perform poorly compared to both BTC and USD.

As the largest alt in the market, ETH has led the market performance for years, especially in the last 2 months.

Since the beginning of the year, the price of ETH has risen from $ 125 to $ 288 at its highest point of the year, seeing a staggering 126% increase in the 45-day period.

But, after such a big rally, ETH began to demonstrate oversold conditions and pullback to important MA lines on higher time frames.

With the 200-day MA on the 1-day ETH chart currently at around $ 192, a prominent trader said that ETH could trade below $ 200 in the near future.

"Yes, can't close on the level this and BTC immediately fell to the next potential support of about $ 8,675. ETH is also at daily levels around $ 228-229. Looks very bad. Failure to maintain this threshold will cause prices to plunge $ 211 and mostly $ 195. "

Contrary to many other altcoins in the market, the ETH price trend is firmly supported by rapid growth in key areas such as decentralized finance (DeFi).

Over the past few days, the cryptocurrency market has seen leading altcoins perform significantly worse than ETH.

Altcoins with new highs in February such as LINK, XTZ and BNB have fallen by more than 10% in the past 24 hours.

How will the discounted ETH affect DeFi?

A concern about ETH's steep downtrend is its potential impact on the rapidly growing DeFi market.

Most DeFi products use ETH as the main collateral; When users borrow money from lenders, they hand over ETH as collateral.

When the ETH price begins to decline rapidly, users are then required to add ETH as collateral to reduce the risk of liquidation.

The sudden drop in price from a peak of $ 280 to $ 200 is likely to pose an unforeseen risk to the DeFi market, due to increased uncertainty.

You can see the price of ETH here.

Thuy Trang

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