Ethereum (ETH) continues to attract crypto investors in anticipation of the upcoming merge upgrade.
Interest has also spread to other related cryptocurrencies, such as Ethereum Classic (ETC), which is seeing a slight surge.
According to CoinGabbar statistics, Ethereum was the top-trending cryptocurrency on September 5, dominating the seven-day chart. The asset, currently trading at $1,565, is up 8.45% over the past seven days. At the same time, Ethereum Classic, the legacy Ethereum chain, is the fifth trending cryptocurrency overall and is up 4.02% over the past seven days and is currently trading at $32.
Ethereum recovers despite market sell-off
Ethereum’s rally came despite the broader crypto market seeing a significant sell-off. However, the surge could be due to the excitement surrounding the merge upgrade, which is seen as bullish sentiment for the cryptocurrency.
Notably, the upgrade, which shifts the blockchain to a Proof-of-Stake (PoS) mechanism, is also said to make Ethereum a deflationary asset. However, it is important to keep in mind that some market participants believe that Ethereum can only maintain its profits if the upgrade is successful.
At the same time, there is considerable skepticism about the upgrade as it is the most polished update to the Ethereum network ever. To ensure a smooth transition, the Ethereum Foundation has increased the merge bug bounty incentive to $1 million.
Ahead of the September 15 event, all public testnets have been updated and are ready for Ethereum’s mainnet.
ETC benefits from merger dynamics
In addition, the upgrade is primarily responsible for the awakened interest in Ethereum Classic. In this case, ETC has become the preferred target for miners as the merger effectively eliminated mining on Ethereum.
As the upgrade approaches, Ethereum miners only need to make minimal changes to start mining ETC. This comes after Ethereum developer Vitalik Buterin urged miners to switch to the ETC chain, stating that it is an excellent PoW network.
Likewise, ETC continues to receive support from various crypto players. As CoinGabbar previously reported, Leon Lv, CEO of AntPool, a mining pool affiliated with cryptocurrency mining hardware giant Bitmain, claimed that the company invested $10 million in the Ethereum Classic ecosystem.
Overall, the ETC rally has been historically consistent, with prices rising in anticipation of Ethereum upgrades. This became evident in April 2021, when ETC surged dramatically in tandem with Ethereum’s Berlin upgrade.
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