The Merge is easily the main crypto event of 2022 and as all big changes it cannot pass by without any consequences. Even though it is only to come we can already see major market changes - the forgotten Ethereum Classic has resurrected🪦.
What is Ethereum Classic (ETC)?
Ethereum Classic is Ethereum’s little brother, that doesn’t differ much in terms of utility, but still has one major difference - limited supply.
That makes ETC more of a speculative asset, rather than the more widely used and traded regular Ethereum.
The idea of creating a second Ethereum net was born because of "The DAO’' project failure and a not so successful Ethereum hardfork . Ethereum Classic was basically a way of remaining the pure, free of censorship form of Ethereum, but also creating a new net, that will suit the wider user base more. Hence, creating two separate networks.
Why are people interested in ETC now?
An opinion about Ethereum Classic failure was spread around the community recently, but we can’t see the failure itself 🔍. The coin was able to maintain an average market capitalisation rate the whole and is a competitor Litecoin, Monero, TRON in terms of it 🏎.
So, it didn’t lose interest - it is just gaining more now 📈. That happens due to investors believing in ETC as the only way of having their finances in the old-fashioned Ethereum, not the PoS one (Even though, we won’t see PoS Ethereum till Q3-Q4 of 2022) 😁
Will ETC overtake ETH?
Not to be biased or anything, but we don’t think so and most community members agree with us. 🤝
The phenomena here is ETC’s incredible increase in hash rate, that is slowly getting close to the hash rate of original ETH 🚀. All that is thanks to the hype, ETC gets now and all the coins being resold.
On the other hand, the on-chain activity with ETC is nowhere near to ETH.
Active projects address number is neither close.
The Merge will change the crypto market a lot no doubt, but what about ETC? Will the hype last for long or is it an instant jump that will go back to the initial after a couple weeks? 🤨 We think, that ETC will most certainly become a powerful tool for miners. ⛏
Dividing the Ethereum ecosystem into a PoS and a PoW one is a win-win situation for both - the creators and the users. 🙌
Users will get a highly efficient Ethereum 2.0 net and a super high hash rate Ethereum classic net, perfectly suitable for mining, while creators will get to choose between PoW or PoS for basing their applications on, not having to worry about the reliability of the platform they are choosing - it is all Ethereum by the end of the day. 😎 Waiting for Merge.
Stay tuned 📻!