Ethereum Classic (ETC) is up 26% in the past 24 hours as miners begin their pre-merger transition process.
With Ethereum (ETH) moving from Proof-of-Work Consensus to Proof-of-Stake (PoS) Consensus – scheduled for September 19 – observers have seen a marked increase in the network’s hash rate ETC, which will not be converted to the PoS algorithm.
According to data from 2miners.com, the network hash rate on ETC has more than doubled since mid-July, from around 20 Th/s to its current rate of 47 Th/s – a new all-time high.
The reasons behind the strong rise of Ethereum Classic
Ethereum Classic is the chain spun off from Ethereum, after a community split over whether to move to a new chain or stay on chain after a major hack that led to a hard fork in 2016.
More than 11.5 million ETH had been stolen – representing around $50 million at the time and $19 billion today – and solving the problem was hotly debated.
Vitalik Buterin and Gavin Wood spearheaded the movement towards the creation of a new Ethereum blockchain, which has since become the first altcoin in the market, while some original ETH investors have remained loyal to the original chain.
This “fork” went against the decentralization and the original goal of ETH, which was to prevent manipulation by individual people or groups.
The fork turned out to be a smart move since ETH is now the second largest cryptocurrency in the market and had reached an all-time high of nearly $5,000. It is currently trading at $1,700.
ETC, on the other hand, has never topped $200 and continues to drift between the top 20 and top 30 of the market.
It has also been the subject of a series of “51% attacks”, which has reduced investor confidence.
The move of miners from ETH to ETC
Some miners have made the decision to migrate to ETC because their ETH mining hardware will become obsolete after the merger, which could jeopardize their livelihoods.
Also, the more miners there are working on the ETC, the less likely the blockchain will be to fall victim to a 51% attack, as it will take a much larger group to form the majority needed to change the blockchain. .
A number of leading mining pools, including Etherpool, Antpool and BTC.comhave already expressed their support for ETC.
According to a report by meowsbits, an ETC codebase contributor, “Ethereum plans to move to Proof of Stake in the near future, which will negate mining interests.”
“It stands to reason that ETC should expect some former ETH miners to contribute to an increase in its hash rate.”
“If ETC achieves a dominant position in terms of hashing power, its risk exposures would fall to a minimum.”
An alternative Ethereum-based cryptocurrency also gaining market attention is Tamadoge.
The new project raised just under $12 million in its pre-sale phase and the rest of its allocation is expected to go on sale before the end of the month.
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