December 9, 2022

Ethereum Classic did not live up to miners' expectations

On September 15, Ethereum abandoned the services of miners, now validators are responsible for assembling blocks on the network. Altcoin ranked first in mining profitability,due to which the total computing power of the network grew until the announcement of the date of the merger. The maximum of 1.27 PH/s was delivered in June, which can be roughly estimated at 22 million 3060 Ti graphics cards with a capacity of 58 MH/s.
Ethereum Classic did not live up to miners' expectations

Image source: coinwarz.com

Since the main source of income wasliquidated, some of the miners put up the equipment for sale, while the rest switched to the extraction of other coins. The greatest hopes were associated with the mining of Ethereum Classic, which is the forefather of Ethereum. However, following the power surge on September 15, the last 10 days have seen a steady decline in further production. From the maximum, the hashrate has already dipped by 40% to 135 TH / s.
Ethereum Classic did not live up to miners' expectations

Image source: coinwarz.com

Despite the increased security of the network, the coindid not receive a proportional increase in value. ETC has risen in price since the announcement of the merger, but has been trading in the red since the date of the actual transition. A classic example of the approach: buy rumors, sell facts.
Ethereum Classic did not live up to miners' expectations

Image Source: Cryptocurrency Exchange StormGain

Difficulty increased due to the influx of minerscalculations, which, while maintaining a low price, led to a decrease in profitability from production by more than three times: from $9.7 to $2.9 per GH / s per day. This is an anti-record for Ethereum Classic and another test of miners for strength.
Ethereum Classic did not live up to miners' expectations

Image source: bitinfocharts.com

However, low figures are not a reason to betcross on the future of the network. Ethereum has been rightly criticized for increased centralization and the risk of censoring transactions, and SEC Chairman Gary Gensler on the day of the merger announced the possible recognition of PoS coins as securities.

Ethereum Classic did not live up to miners' expectations

Image source: defillama.com

Ethereum risks lead to recoverycommunities around ETC. Thus, the amount of blocked funds in DeFi increased from $93 thousand in July to the current $607 thousand. Compared to $31 billion in Ethereum, this is a drop in the ocean. Nevertheless, there is a positive trend, and if the above risks materialize, interest in ETC will increase many times over.

Analytical group StormGain

(platform for trading, exchanging and storing cryptocurrency)