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EthereumPoW: Interest in the network goes bust as…

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EthereumPoW loses steam as declining ecosystem metrics hint at a drop in interest in the proof-of-work network

EthereumPoW: Interest in the network goes bust as...

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  • EthereumPoW’S DeFi TVL has clinched an all-time low.
  • Network data shows a decline in on-chain activity.

Since the chain became operational nine months ago, the total value of assets (TVL) locked by decentralized finance (DeFi) protocols within EthereumPoW’s [ETHW] has declined by 97%, data from DefiLlama showed.


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Following an influx of DeFi protocols to the proof-of-work network a month after it launched in September 2022, the chain’s TVL rallied to an all-time high of $6.78 million by 29 October. However, embarking on a downtrend ever since, EthereumPoW’s TVL has dropped by 76% this year alone. 

Source: DefiLlama

State of EthereumPoW

For context, the DeFi project with the highest TVL on the EthereumPoW network is LFGSwap, with a TVL of $95,040. As of November 2022, this was above $2.5 million and has since dropped by 96%.

In the last week alone, eight out of the fifteen protocols housed within the chain logged TVL dips, with one declining as low as 85%. 

Source: DefiLlama

Regarding mining on the network, data from 2Miners.com revealed a continued decline in EthereumPoW’s hashrate. At 11.06TH/s at press time, the chain’s hashrate has dropped by 33% since the year began and by 83% since September 2022. 

Source: 2Miners.com

As expected, the drop in mining activity on  EthereumPOW also culminated in a similar downward trend in the chain’s mining difficulty. At press time, the network difficulty was 147.47T. This meant an 82% decline in network difficulty since the first block was mined on the network when Ethereum transitioned into a Proof-of-stake (PoS) consensus mechanism in September 2022. 

A decrease in a network’s hashrate and mining difficulty can suggest a reduction in the number of miners. This can be caused by a number of factors, such as reduced rewards for miners or a decline in the value of the cryptocurrency being mined.

Network activity in the last 24 hours

Per data from OKLink, EthereumPoW saw an influx of new addresses in the last 24 hours. According to the on-chain data provider, 426,681 new addresses were created on the blockchain. This brought the total number of addresses on the chain to 351 million. Notably, the chain has 351 million addresses, but less than 1% were active in the last 24 hours.

As for its ETHW coin, it traded at $2.02 at press time. It suffered a 2% dip in price in the last 24 hours and a 33% decline in trading volume

 

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Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.
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