On May 3, 2020, the Bitcoin network recorded a new all-time high in hash rate, reaching approximately 117.4 exahashes per second (EH/s) — an 8.80% increase from the previous week alone. The milestone, confirmed by on-chain analytics firm Glassnode, came just ten days before the network’s highly anticipated third halving event scheduled for May 11, when block rewards for miners would be slashed from 12.5 BTC to 6.25 BTC.
TL;DR
- Bitcoin hash rate hit a new all-time high of ~117.4 EH/s on May 3, 2020
- The record came just 10 days before the third BTC halving on May 11
- Network difficulty reached 15.96 trillion, reflecting intensified competition among miners
- Total Bitcoin addresses grew to over 48.27 million, adding 262,901 new addresses in a single week
- BTC transaction fees surged by over 182% week-over-week as network congestion increased
A Hash Rate Surge That Commands Attention
According to data compiled by Huobi Research for the week ending May 3, the Bitcoin network’s average hash rate climbed to 117.4 EH/s, representing an 8.80% weekly increase. Mining difficulty also inched upward to 15.96 trillion, a modest 0.06% rise that nonetheless signaled sustained miner commitment despite the impending revenue reduction.
The Glassnode tweet confirming the new all-time high sent ripples through the cryptocurrency community, reigniting a long-standing debate: does Bitcoin’s price follow its hash rate, or is the relationship merely coincidental?
The Price-Hash Rate Debate Heats Up
Proponents of the “price follows hash rate” theory, including prominent broadcaster Max Keiser, argue that rising hash rate reflects deepening network security and growing institutional commitment to Bitcoin mining. Keiser has maintained since 2018 that hash rate trends serve as a leading indicator for BTC price movements.
Historical precedent offers some support. In September 2018, with the hash rate hovering around 56 EH/s, Bitcoin traded near $6,500. By December of that year, the hash rate had collapsed to approximately 31 EH/s, and BTC had plunged to between $3,200 and $4,000. The subsequent hash rate recovery in 2019 preceded Bitcoin’s price rally back above $10,000.
However, not everyone is convinced. Market analyst Alex Krüger has argued that the causation runs in the opposite direction: “Hash rate follows perceived mining profitability,” he stated, suggesting that miners expand operations when price trends make mining lucrative, not the other way around.
Transaction Fees Skyrocket Ahead of Halving
One immediate and measurable impact of the pre-halving activity was a dramatic surge in transaction fees. Data from Huobi Research shows that the average Bitcoin transaction fee for the week ending May 3 reached $2.108 — a staggering 182.20% increase from the previous week. This spike was further corroborated by Decrypt, which reported that the average fee hit $2.94 on April 30, the highest level in ten months.
The rising fees reflected growing network congestion as users rushed to move funds ahead of the halving. Average block size increased by 8.06% to 1.34 MB, while the average number of transactions per block actually decreased by 6.15% to 1,938 — suggesting that larger, fee-heavy transactions were dominating block space.
Network Growth Remains Robust
Beyond hash rate and fees, the Bitcoin network showed healthy organic growth. The total number of unique Bitcoin addresses reached 48,274,688, with 262,901 new addresses added during the week — a 0.55% increase. This steady user base expansion, occurring even as Bitcoin traded around $8,897 according to CoinMarketCap data, suggested that network adoption was proceeding independently of short-term price action.
Ethereum, the second-largest cryptocurrency by market cap, also saw its hash rate increase by 1.72% to 179.66 TH/s, while ETH mining difficulty rose 1.45% to 2,249.51 TH. The ETH network maintained substantially lower transaction costs, with average fees at just $0.144 — a 4.35% weekly increase that paled in comparison to Bitcoin’s fee surge.
Why This Matters
The hash rate all-time high on May 3, 2020, represented more than a statistical milestone. It demonstrated that despite the imminent halving — which would cut miner revenue by 50% — mining operations worldwide were continuing to expand and invest in infrastructure. This level of commitment from miners signaled strong conviction in Bitcoin’s long-term value proposition.
The fee surge, meanwhile, offered a preview of how the Bitcoin network might sustain miner incentives in a post-halving world where block subsidies steadily diminish. If transaction fees can partially offset reduced block rewards, the economic security model that underpins Bitcoin remains viable.
For the broader blockchain ecosystem, the hash rate record validated the proof-of-work consensus mechanism’s resilience and scalability. As BTC traded at $8,897 with a market cap of $163.4 billion and the total crypto market hovering near $248.9 billion, the network was processing record levels of computational power — a testament to the robustness of decentralized infrastructure at scale.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry risk, and readers should conduct their own research before making investment decisions.
117.4 EH/s and miners were STILL adding rigs 10 days before the halving. that takes serious conviction, knowing your revenue was about to get cut in half
keiser has been calling price follows hashrate since 2018 and honestly the chart kinda backs it up. 56 EH/s in sept 2018, btc at 6500. hash rate crashed, so did price
Kruger had the better take here. miners expand when btc price makes mining profitable, not the other way around. the causation argument is backwards