Before the Merge update on the main Ethereum network, cryptocurrency investors continued to show increased interest in Ethereum Classic (ETC). The interest is underscored by the ETC purchasing pressure that has resulted in a substantial influx of cash into the coin.
Specifically, as of July 30, the market value of Ethereum Classic was $5.33 billion, signifying an influx of $1.69 billion or a 46 percent increase from July 23’s $3.64 billion.
In addition to the increase in market capitalization, ETC’s value has increased, with the token rising almost 50 percent in a week. At the time of publication, ETC was trading at $40, representing a 51 percent increase over the previous week.
Throughout the previous week, ETC has shown a remarkable upward trend. In addition to the general cryptocurrency market increase, the Merge upgrade has sparked ETC bulls. Notably, the update will convert the Ethereum blockchain from a Proof-of-Work (PoW) protocol to a Proof-of-Stake (PoS) mechanism.
Thus, ETC can accommodate migrating Ethereum miners since they will need to make modest adjustments to begin mining on Ethereum Classic.
Additionally, it is anticipated that the current Ethereum hash rate would likely migrate to the ETC network, making it the most convenient alternative for moving miners since it keeps their equipment from becoming obsolete.
Support from Vitalik Buterin
In addition, the capital inflow and price increase occurred when Ethereum’s inventor Vitalik Buterin endorsed ETC and said that the network could accept PoW miners. Buterin praised ETC, arguing that the blockchain is a superior alternative to Ethereum’s PoW protocol.
“If you cancel Proof of Stake, you will not be cancelled. Ethereum Classic is the original Ethereum cryptocurrency. It’s a friendly group, and I’m certain they’ll embrace proof-of-work enthusiasts…>. If you like proof-of-work, you ought to switch to Ethereum Classic. “It is an excellent chain,” said Buterin.
Overall, the current ETC rise is consistent with a historical pattern of price increases around significant Ethereum upgrades. For example, in April 2021, ETC’s surge corresponded strongly with Ethereum’s Berlin upgrade.
With the expected arrival of Ethereum miners, ETC network developers have also obtained assistance for blockchain enhancement. Finbold claimed that Leon Lv, the chief executive officer of AntPool, a mining pool linked with Bitmain, said the business had spent $10 million in the ETC ecosystem.
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