In the days leading up to the merge update implemented on the main Ethereum (ETH) blockchain, cryptocurrency investors continue to show growing interest in Ethereum Classic (ETC). Interest is underscored by ETC buying pressure, resulting in significant capital inflow into the token.
Notably, the market cap of Ethereum Classic increased from $4.36 billion on Sept. 5 to $5.61 billion on Sept. 6, which represents an inflow of $1.25 billion in recent ones, according to data from CoinMarketCap corresponds to 24 hours.
Ethereum Classic Market Cap 1 day. Source: CoinMarketCap
This inflow of capital means ETC is trading at $41.10, up 28.1% over the past 24 hours and up 20.2% over the past seven days.
Ethereum Classic price chart 1 day. Source: CoinMarketCap
Why is Ethereum Classic rising?
Ethereum Classic has reached an unprecedented hash rate of 48 terahashes per second (TH/s), with an annual growth rate of more than 480%. The hash rate reflects the computing power required to generate new blocks on the network.
Ethereum Classic Hashrate. Source: 2miners.com
The increase in Ethereum Classic hash rate was most likely caused by increased miner activity on ETC in preparation for this month’s Ethereum upgrade, also known as a merge, which will move the network’s consensus process from a proof-of-work ( PoW) to a Proof-of-Stake (PoS) system.
The event, scheduled for mid-September (September 13-15), will waive the verification of transactions by miners.
As a result of the merger, Ethereum miners, who have collectively invested billions of dollars in mining equipment over the years, may need a PoW blockchain capable of serving as Ethereum’s successor. The upgrade is also partly responsible for sparking interest in Ethereum Classic. In this case, ETC has emerged as the coveted target for miners after the merge halted mining on Ethereum.
Some mining pools see Ethereum Classic as a credible PoW blockchain alternative to Ethereum and have considered expanding their operations to Ethereum Classic.
It is important to note that Ethereum Classic’s hash rate is still relatively low compared to Ethereum. The Ethereum Classic hash rate is only 5% of the total Ethereum hash rate, around 895 TH/s. This suggests that Ethereum Classic still has a significant way to go before it can be considered a large network by PoW miners.
Disclaimer: The content of this website should not be construed as investment advice. Investing is speculative. When investing, your capital is at risk.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.