March 29, 2024

Ethereum Classic soared 2.5x in two weeks on news of the merger

Ethereum Classic appeared as a result of the Ethereum hard fork and is the parent branch.Because of the comingthe transition of the offspring to PoS ETC is growing in price, as the migration of miners will bring it to a new level of reliability.
Ethereum Classic soared 2.5x in two weeks on news of the merger

Image Source: Cryptocurrency ExchangeStormGain

Ethereum (ETH) was the first full blockchainwith the support of smart contracts, which led to the explosive growth of crypto projects. In 2016, the crowdfunding platform The DAO was launched, becoming the largest project in history. This is a decentralized autonomous organization that allowed members to come together to work on different ideas and receive funding from all over the world. In just a few months of operation, The DAO raised $150 million.

However, from the technical side, the platform had a number ofshortcomings. Taking advantage of the vulnerability, in June of the same year, the attacker stole over a third of the collected funds. To prevent the hacker from using the money, Vitalik Buterin carried out a hard fork and “rolled back” the blockchain.

The majority supported him, but there were those whowho made such a decision with hostility. Interference with the chain violates the key postulate of decentralization “code is law”, so a number of developers remained faithful to the original branch, since 2016 called Ethereum Classic (ETC).

ETC was not widely used, and many even predicted oblivion to the blockchain, but with the transition of ETH to PoS (The Merge procedure or merger), it can open up a second wind.
Ethereum Classic soared 2.5x in two weeks on news of the merger

Image source: twitter.com/trent_vanepps

The strength of Ethereum is in the support of smart contracts and inhigh degree of decentralization. The latter is provided by miners dispersed around the world. With the transition to PoS, the need for miners will disappear. For many, this means increased network centralization and increased risks. In addition, the “move” itself can give rise to a lot of unforeseen errors. For the same reason, year after year, developers push back the end date of the merge, conducting one test after another.

The next coin after ETH in terms of mining profitability on the Ethash algorithm is ETC. The migration of miners will add reliability and attractiveness to networks as a base blockchain for young crypto projects.
Ethereum Classic soared 2.5x in two weeks on news of the merger

Image source: coinwarz.com

On July 14, Ethereum developer Tim Beiko proposedto accept September 19 as a preliminary date for the merger, the rest of the conference participants supported it. In two weeks, the ETC price increased 2.5 times, and the network hashrate jumped by 22%.

Analytical group StormGain

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