Santiment, a platform that mainly focuses on sharing cryptocurrency insights, accessing data, and learning everything about the crypto markets for smarter investing, recently partnered with cyber•Drop.
The partnership aims at creating customized mining-related metrics functional on the Ethereum network. An accurate, comprehensive overview of the ETH mining ecosystem was necessary to start the development phase of the project.
The analysis of the many intricacies of Ethereum mining pools was done by cyber•Drop developers. They also researched miner transactions, reward distribution, and other closely-related topics.
The findings are important since they will work as foundations for the upcoming mining metrics on Santiment. Here’s some of the most crucial insights.
Ethereum Mining Pools Analysis
The time frame focused for analysis begun with the launch of the ETH network rising to block 6,781,512 that was created on November 27, 2018.
The mining pools received a lifetime cumulative total of 0.4M ETH in transaction fees and 31M ETH in rewards during that period. A total of 4,700 addresses got a mining reward in the entire focused Ethereum lifespan.
Nonetheless, not all mining pools get developed uniformly. Reward inequality exists with the top 3 pools grabbing over 50% of all available mining rewards.
Some pools remain largely unchanged for even months after getting established early on into the network launch. It is noteworthy that the mining rewards are the key sources of inflow for the mining pool balances.
But, non-reward transactions to these pools are also significant capping at approximately 4M ETH across the whole network. Most incoming transactions mirror outgoing flows with the cumulative balance of the pools facing a constant decline lately just like the ETH market capitalization.
The combined balance of all mining pools has declined from the 1M ETH peaks at the start of 2016 to just 0.2M ETH currently. Nevertheless, most of these pools control a considerably larger amount of funds in their hot and cold wallets.
The mining pools can further get subdivided into two unique groups based their outgoing transactions’ average value.
Those with less than 10 ETH account for 82% of lifetime mining rewards and a total of 91% in the last year. The pools with more than 100ETH account for 11% of all lifetime mining rewards and a mere 8% in the last year. The recent cyber•Drop focuses on the group with less than 10ETH.
Ethereum Miners Analysis
The miners’ transaction volume remains significantly stable over a long period with an average tx volume ranging from 15K to 20K ETH/day.
On the other hand, the outgoing transactions feature strong outliers. The maximum outgoing tx volume was recorded as 125K ETH on July 19, 2016. Miner balances are increasing constantly contrary to the mining pools balances.
Their 1M ETH balance amounts to approximately 5% of all lifetime mining rewards. HODLers account for just 2% of all mining rewards but claim up to 40% of their total balance.
The DAO hardfork of July 20, 2016, impacted the cumulative balance of Ethereum miners considerably.
The 2017 Bull Run set up a ‘balance rally’ that has endured until today in spite of the recent downward correction.
New Ethereum mining metrics will get incorporated into the Santiment platform according to many results from previous researches conducted by cyber•Drop.
The new Ethereum mining metrics are expected to join Santiment’s newly-launched ‘ETH Gas Used’ dashboard.