Proof of Work Mining Craters After Ethereum's Merge
Ethereum Miners Struggle to Find Their Footing After The Merge
By: Samuel Haig • Loading...
DeFi![Proof of Work Mining Craters After Ethereum's Merge](/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2F6oftkxoa%2Fproduction%2Ff67314b4388f2b8fcc548337a14b9325e55fa855-880x495.jpg&w=828&q=75)
The fallout from The Merge for Proof of Work mining outfits has been swift and profound. As expected, many former Ethereum miners appear to be shutting down their hardware following the execution of its historic upgrade last Thursday.
Less than one-third of Ethereum’s hashing power has migrated to Proof of Work chains after The Merge. An estimated $5B worth of mining hardware was displaced by the shift, forcing miners to seek out opportunities on other Proof of Work chains.
But with the flood of hash rate from Ethereum annihilating the rewards available to miners on PoW chains, many are choosing to exit the market rather than pay more for electricity than they would receive in mining rewards.
To read the full story subscribe to The Defiant newsletter.
Advertisement
The Defiant Daily
“an industry must-read”
Get an edge in Crypto with our free daily newsletter
Know what matters in Crypto and Web3 with The Defiant Daily newsletter, Mon to Fri
90k+ Defiers informed every day. Unsubscribe anytime.