Aaryamann Shrivastava
FXStreet
- Ethereum Classic banked on Ethereum’s Merge to draw all Proof of Work supporting miners to its network.
- Right before the Merge, Ethereum Classic’s hash rate jumped by more than 370% within 24 hours but then declined.
- Still, ETC’s price is down by 28% and approaching critical support.
The Proof of Work (PoW) vs. Proof of Stake (PoS) debate heated up this month as Ethereum mainnet officially shifted to the PoS consensus method. However, not everyone was a taker since many of the miners preferred the older methods instead of switching to staking.
Ethereum Classic reaped the benefits of this decision, although only for a short while.
Ethereum Classic returning to normalcy
Ethereum went through the Merge two weeks ago, which marked a historic moment for not just the Ethereum but the crypto community as well. This is because the second biggest cryptocurrency network shifted its mainnet to a whole different consensus method, moving to PoS from PoW.
The ones that did not shift to staking found their PoW market in an older hard fork of Ethereum, Ethereum Classic. Twenty-four hours before the Merge, these miners flocked over to Ethereum Classic and its hash rate skyrocketed by over 370%, reaching 307.1 Th/s.
Ethereum Classic Hash Rate
Ethereum Classic’s team also banked on this opportunity persuading miners to jump to this network.
PoW miners can go with ETC. Stakers can go with ETH2. Which is fair to each their own choice. Thanks and congrats @VitalikButerin et al.
— Ethereum Classic (@eth_classic) September 15, 2022
May both chains co exist in their own right providing options for stakers and miners. https://t.co/4x008OxaUL
However, it did not take them long to scale back. While some miners stuck to ETC, many others migrated to other networks, and the hash rate took a hit. Dropping by 47% in the span of 10 days, the hash rate could be seen lingering at 160.8 TH/s at the time of writing.
This also had an impact on the mining difficulty, which fluctuated in sync with the hash rate.
Ethereum Classic Difficulty
Only the network, not the price
This sudden migration of miners was not followed by investors as the buying pressure on ETC remained unchanged. In fact, following the broader market bearish trend, ETC’s price went down during this duration.
Ethereum Classic 24-hour price chart
Trading at $28.1, ETC’s price fell by 28.18% following the Merge, inching closer to the $23.33 support level. This price level has been historically tested as a critical support level and would act as a buffer to prevent a further drawdown for ETC.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.
Ethereum shows firm support at key level as its correlation with US indices increase
Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.
Mango Market attacker convicted of fraud and market manipulation
Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.