L’ETC no longer mine well? – Ethereum Classic (ETC) experienced a surge in the attractiveness of its mining last September after The Merge. Indeed, this now distant neighbor of Ethereum (ETH) had attracted all holders of mining machines after Ethereum’s transition to Proof of Stake (PoS). But blockchain seems to have lost its splendor these last weeks.
Miners bury the war hash between ETH and ETC
Ethereum Classic (ETC) was created in 2016 after a hacker managed to steal several million ETH to the decentralized organization The DAO. At the time, a majority of the consensus wanted to carry out a hard fork in order to erase this unfortunate part of history and start again on a sound basis. Ethereum Classic is the original blockchain which continued to evolve on its side on the hacked version of Ethereum.
While the latter seemed to be gradually falling into oblivion limbo, a major event occurred last September. The passing of Proof of Work (PoW) to Proof of Stake (PoS) of the Ethereum (ETH) blockchain. This event, called The Merge, has simply rendered obsolete all the mining machines that have previously secured the network. From now on, security is carried out via staking, the blocking of its ETH, no longer mining. But then, what to do with all these machines?
This is exactly the question that all Ethereum miners have asked themselves. Anticipating this transition, they gradually branched off to other PoW blockchains. Eh yes ! You have to somehow keep making money. In this clone blockchain wars, Ethereum Classic got a big slice of the pie. A time put aside, it is therefore back in the spotlight today with an influx of miners on its blockchain.
And the enthusiasm at the time of the Merge was, to say the least, spectacular. The network went from 58 TH/s on September 14 to almost 200 TH/s two days later. To get an idea, between May 2020 and July 2022, the network oscillated between 8 and 18 TH/s. A dazzling increase.
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The bear market: this great mining of spring… or autumn
Nevertheless, after this temporary euphoria, ETC’s hashrate seems to be gradually declining in recent months. This reflects a continuous movement of departures of miners from this blockchain. Perhaps for other competing PoW networks deemed more interesting. One can typically mention the Ravencoin where the FLUX. Indeed, after having almost reached 200 TH/s, the increase has not been maintained and the hash rate is now close to the 100 TH/s.
the bear market present for more than a year now also does not help to attract new miners. Less attractive prices, battered profitability and the lack of interest from the general public lead most projects into a slow downturn.
On Ethereum Or on Bitcoinminors have the hard life in this depressed period of the crypto market. Prices are falling. The profitability of equipment, sometimes purchased in the middle of a bull market at prices decorrelated from reality, is called into question. In the end, the market cleans up all the excesses, getting rid of the least solid players in favor of the most robust: those who know how to have the shoulders to support future increases to come.
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