Two Ethereum Pools Now Account for Over 50% of Total Hashrate

Two mining pools on Ethereum

Hashrate is often used as an indicator to judge the strength of a network. However, it is also important to look at how distributed this hashrate is. In the case of Ethereum, it is becoming more and more dominated by a few major pools.

Ethereum 2.0

Two Mining Pools Now Dominate Ethereum

Ethereum’s hashrate has remained relatively steady since 2019. Unlike Bitcoin

Despite the hashrate staying constant, there is now less and less competition among mining pools on Ethereum. According to the latest numbers, two Ethereum pools now account for over 50% of the hashrate. Ethermine and Spark Pool are the two leading mining pools on the network now, as ungrubles (@notgrubles) recently tweeted. 

This is in sharp contrast to Bitcoin, where no mining pool is responsible for more than 18% of the total hashrate. However, it should be noted that Bitcoin’s miners have nonetheless been criticized for being overwhelmingly based in China. 

Regardless, the declining competition among miners on Ethereum is concerning. However, it may not have much of an impact in the long-term if Ethereum moves to a proof-of-stake network soon enough. Miners are already getting squeezed: in 2019, miners on Ethereum saw their revenues plummet by 75%. 

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