As the Ethereum network grows, so does the difficulty in mining blocks. The reason for this is that the Ethereum network is designed to adjust the difficulty level so that blocks are mined on average every 10 minutes. The more miners that are mining Ethereum, the higher the difficulty level will be.
This is because the network needs to ensure that there is enough work for all of the miners. If there were not enough work, some miners would be idle and not contributing to the network.
The higher difficulty level also has a direct impact on miner rewards. As the difficulty level goes up, so does the reward for successfully mining a block.
This is because it becomes more difficult to mine blocks, so those who are able to do so are rewarded with more ETH.
The main reason that the Ethereum network increases difficulty is to ensure that blocks are mined on average every 10 minutes. This is important for maintaining the security of the network and ensuring that all transactions are processed in a timely manner.
The higher difficulty level also has a direct impact on miner rewards, which provides an incentive for miners to continue contributing to the network.