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Despite the Ethereum burn introduced with the London hard fork, miners are still making a good amount of revenue from mining. For ETH, the balance held by miners had been dropping since 2016. This was mostly a combination of poor market conditions and miners selling their holdings to fund their mining activities. With low prices, the total dollar value of miners’ ETH holdings had dropped.
This number picked back up in 2021. Following the bull run which began in 2020, the price of Ethereum has gradually recovered. And by extension, the dollar value of the miner’s ETH holdings had begun to climb. Current metrics show that the value of ETH held by miners has hit a five-year high. The last time that miners held this much value in ETH had been in 2016.
Related Reading | Polygon Founder Says Ethereum Is Set To Replace Bitcoin As The Global Standard
Miners’ ETH Holdings Reach New Peak
Data analytics firm Sentiment published a report showing the current ETH balances of miners. According to the report, miner ETH balances currently sit at 532.75K ETH, leading to a total balance of more than $1.85 billion.
#Ethereum is up to $3,480, the coin's highest price in 16 days. Notably, miner balances have continued to skyrocket. 532.75k $ETH is the largest balance held by miners since July 13, 2016. The value of these coins is $1.85B, easily an #AllTimeHigh. https://t.co/zf2g4ypqiJ pic.twitter.com/atPnYLhAgc
— Santiment (@santimentfeed) October 5, 2021
ETH price balances above $3,600 | Source: ETHUSD on TradingView.com
The last time ETH miner balances had reached this amount had been in July 2016, shortly after the Ethereum blockchain went live. ETH’s value has grown much higher since the report was published, putting current balance values even higher. This is the highest the value of miner ETH balances has ever been. Additionally, miners have been holding on to their bags. Refusing to sell until the market becomes more favorable.
Ethereum Price Recovering To Record Levels
The recent growth of ETH has contributed greatly to the increase in the value of the miner ETH balances. This, coupled with increasing hold sentiment among miners, has put miner balances on record levels. But miner balances are not the only ones experiencing a return to record levels.
Ethereum price had suffered had in the bloody month of September. This had crashed the price of the digital asset down below $3,000, bottoming out at close to $2,600, a one-month low for the asset.
Related Reading | Investors Expect Ethereum To Outgrow Bitcoin, According To CoinShares Survey
Now, with current recovery trends, the price of ETH is set to break a new record level. ETH’s recent breakout has positioned the price of the asset well above $3,600. And indicators point to the bull rally pushing the price of the digital asset above $4,000. End-of-year predictions from market analysts have placed the asset at a $5,000 price mark, with bitcoin hitting $100K.
It is still too early to tell if Ethereum will hit the price targets set for it by analysts. But the asset is now trading in the green and continues to be favored among crypto investors. ETH’s price is trading at $3,616 at the time of writing.
Chart from TradingView.com
