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Ethereum miners continue to face difficulties ahead of the approaching The Merge event. Here is information on how famous miners are dealing with this.
ETH miners will soon be replaced by PoS validators, which could cut ETH network consumption by 99%. Needless to say, miners’ revenues will definitely suffer. The revenue of ETH miners fell by about $66 million after a $750 million statistic in August.
Below is a Glassnode chart depicting the decline in revenue since January 1, 2022.
The question arises about how miners will cope with this change. Ethereum’s second-largest mining pool, F2Pool, is the latest to move to address this concern
Notably, ETH miners will cease operations between 2022-09-10 and 2022-09-20. In a Sept. 7 report, the operator added:
“Our ETH team will operate as normal until the end of ETH mining. We invite you to continue mining using our ETC, RVN, CFX and many other coins after The Merge”
Instead, the Mining Pool will support ETC mining as usual when Ethereum moves from PoW to PoS.
In addition, mining companies Hive Blockchain and Hut 8 Mining Corp. have also announced details of how their businesses are changing operations away from Ethereum mining.
Ethermine has also announced the creation of a new Staking group for users. Here, the respective members have the opportunity to collectively contribute their ETH and earn a 4.43% annual interest on their ETH deposits.
To be fair, with the change of ETH, miners have had to adapt a variety of ways to meet demand. At the same time, the ETH miner community has pushed to maintain the current PoW consensus mechanism, primarily because this change will make their high-capacity and expensive mining rigs redundant.
Either way, mining definitely depends on the price of Ethereum. At the time of writing, ETH had a 10% correction and was trading around the $1.5K mark. Such an alarming drop could raise liquidity concerns.
Bitcoin, on the other hand, suffered from a similar incident. Recently, Poolin, one of the largest Bitcoin Mining pools by Hash rate froze withdrawals from PoolinWallet due to liquidity issues.
