The research department of cryptocurrency exchange BitMEX expects the ASIC manufacturing industry to continue to consolidate.
BitMEX Research wrote in a recent report that only two to three ASIC manufacturers will survive in a long run.
The exchange's research arm analyzed the five main players in the market (Canaan, Ebang, MicroBT, Bitmain, Butterfly Labs), with a focus on their prospects.
In general, the report states competition has tightened within the ASIC manufacturing industry and Bitmain’s dominance has been significantly reduced over the past year and a half.
The researchers forecast a considerable extension of an ASIC mining machines lifespan as the current generation of products may remain in operation for several years.
"While China is still dominant with respect to ASIC manufacturing, geographically China is losing share in the mining farm operator business to Europe and North America," the report highlights.
Meanwhile, iHodl reported that the shares of the Chinese crypto mining giant Canaan Creative crashed below the $2 mark on Monday for the first time.
According to Aries Wang, co-founder of the crypto exchange Bibox, the drop is related to the decline in demand for mining equipment during the months before the bitcoin (EXANTE: Bitcoin) halving, which took place in May.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.