Ethereum has finally managed to cover a lot of lost ground to grab itself the second spot from Ripple.
Ripple was ranked second for more than a month and now ethereum has finally retaken its second position with the crypto seemingly turns quite bullish. The bullish trend has led to an increase in prices of ethereum by more than 10% and volumes hitting $2.7 billion mark. The reason is probably because of the Constantinople hardfork which is now in two weeks on January the 16th.
That will provide some efficiency gains in gas usage and for smart contracts, with new issuance to be reduced by 33% from 3 eth per block to 2 eth per block. Ethereum’s hashrate has plunged recently to 165 Terahashes from a high of 300, recovering slightly to 174 currently indicating that the miners are not hoarding ethereum but probably insta selling block rewards.
No miner is publicly traded, so we have to operate on guesswork. From what data is available it appears Bitmain may have sold all their one million BCH or the vast majority of it. That would explain the November crypto crisis.
In these sort of situations you usually get new miners entering the scene as the network effectively punishes the current miners for failing to withdraw new supply while price was falling. Instead miners bring extra new supply – whatever they’ve hoarded – while price is falling. Effectively crashing their own business.
Thus new entrants appear funded through fiat with sufficient fiat runaway. They have seen the inefficiency and the opportunity, or at least they’re betting on it. Their aim would be to hold the new crypto, and so the cycle perhaps repeats.