• 12. April 2024

EthereumPoW’s DeFi TVL Hits All-Time Low as Hashrate, Mining Decline

• EthereumPoW’s DeFi TVL has declined by 97% since the chain launched in September 2022.
• Mining activity on the network has dropped by 33% since the beginning of the year and 83% since September 2022.
• There was an influx of 426,681 new addresses on EthereumPoW in the last 24 hours.

Decline in EthereumPoW TVL

EthereumPoW’s total value of assets (TVL) locked by decentralized finance (DeFi) protocols within its [ETHW] has declined by 97%, data from DefiLlama showed. Since launching nine months ago, TVL has dropped by 76% this year alone. The project with the highest TVL is LFGSwap at $95,040 – a 96% drop from its peak of $2.5 million in November 2022.

Decrease in Network Hashrate

Data from 2Miners.com revealed a continued decline in EthereumPoW’s hashrate, which is currently 11.06TH/s – a 33% drop since January 2023 and an 83% dip since September 2022 when it transitioned to proof-of-stake consensus mechanism. This decrease led to an 82% fall network difficulty, measured at 147.47T at press time..

Inflow of New Addresses

OKLink’s data showed that there were 426,681 new addresses created on EthereumPoW blockchain over the last 24 hours, bringing its total number of addresses to 351 million.

Reasons for Declining Interest

The reduced rewards for miners or a decline in cryptocurrency values are potential reasons why interest in EthereumPOW is declining due to reduction in mining activity and network difficulty on the network .

Conclusion

Overall, metrics indicating a drop in interest within EthereumPoW show that its DeFi TVL has fallen drastically over time as well as hashrate and mining difficulty experiencing significant dips since launching nine months ago. In contrast, there was an influx of new addresses created on the blockchain over the past day which suggests there may still be some appeal for investors despite decreasing ecosystem metrics overall