As known at the end of 2019 Ethereum has entered a new phase of its existence, the one that will lead to the so-called ETH 2.0, the new version of the platform which, to operate, will use a POS consent protocol; after successfully archiving the Istanbul hard fork, therefore, the developers implemented a new fork on January 2 and decided to delay the release of what were called "difficulty bombs".
The transition to the new consent protocol, in fact, will take time and for a while ethereum will find itself using both protocols, both POW and POS; to encourage miners to adopt the new POS protocol, therefore, the developers have already planned to increase the difficulty of extraction, so as to make progressively more expensive to mine with POW.
For now, however, the difficulty of the ethereum network has decreased, thus also favoring the collapse of the average extraction time of a block, which has decreased by 25%; this means that many more blocks are extracted daily at the moment and, consequently, this favors inflation because it also inevitably increases the circulating supply.
At this moment the Ethereum network has gone from mining 4980 blocks per day to mining 6750, as a result almost 13500 ETH per day are placed on the market daily, compared to 10237 at the end of 2019.
From this moment on, however, the difficulty to mine a block will continue to rise gradually until, as mentioned, for miners to extract a block with POW protocol will become practically impossible and if they want to continue to mine Ethereum they will necessarily have to agree to move on to new POS protocol.
Looking at the graphs we seem to understand that the market has welcomed the latest changes and in fact since mid-December about the price of ETH, paired with the dollar, has gone from a minimum of $ 117 (touched on December 18) to a maximum today of $ 152, thus reevaluating by almost 35%.
For now there is not much more to say, waiting for the transition to the new version of ethereum to be completed, therefore, we can only postpone you until tomorrow, for our usual analysis of the price of Ethereum paired with Bitcoin.
