Bitcoin’s hashrate has reached a historic milestone, surpassing 1 zettahash for the first time ever, as miner revenue per exahash hits an all-time low of $42.40.
The hashrate of Bitcoin has surpassed 1 zettahash (1 ZH/s) for the first time ever, according to data from Glassnode. This milestone marks a significant increase in the network’s computing power, which is driven by an all-time high in hashrate.
The Decline of Miner Revenue
Despite the surge in hashrate, miner revenue per exahash has dropped to an all-time low of $42.40. This decline is attributed to a combination of factors, including low transaction fees, rising network difficulty, and a relatively low bitcoin price. The decrease in hashprice is the result of miners being unable to sustainably generate revenue due to the increasing costs associated with operating their rigs.
Network Difficulty Adjustment
The recent 7% increase in network difficulty adjustment is the largest since July 2024 and marks the 14th positive change out of the last 17. This mechanism ensures that blocks continue to be mined approximately every 10 minutes, maintaining network consistency. The difficulty adjustment is set by the Bitcoin Network’s protocol and is designed to adjust to changes in hashrate.
Network difficulty is a measure of how hard it is to mine a block in a blockchain network.
It is adjusted every 2016 blocks, or approximately every two weeks, based on the time it took to find the previous 2016 blocks.
A higher difficulty means that more computational power is required to solve the mathematical equations and validate transactions.
This helps maintain the security and integrity of the network by making it harder for malicious actors to manipulate transactions.
Historic Milestone
Bitcoin first reached 1 EH/s in 2016, a milestone that is now been multiplied over 1,000 times. This record-breaking hashrate represents a significant increase in the network’s computing power, which has far-reaching implications for its security and scalability.
Long-term Implications
Analyzing the hashrate on a 24-hour timeframe can be misleading due to natural block time variability. However, using longer-term averages, such as the 7-day moving average, provides more accurate insights into the trend. The milestone is historic and marks an important turning point in the evolution of Bitcoin’s mining landscape.
Recent Developments
The hashrate has been climbing to record levels despite bitcoin’s price remaining disconnected from this trend. In recent days, the price has fallen another 10%, driven in part by President Trump‘s tariffs, and is now hovering around $77,000. The decline in hashprice is a result of miners being unable to sustainably generate revenue due to the increasing costs associated with operating their rigs.
Expert Insights
James Van Straten, Senior Analyst at CoinDesk, specializes in Bitcoin and its interplay with the macroeconomic environment. He provides insights into the implications of this milestone on the broader financial system.
