Here’s why Ethereum Classic pumped by more than 15% this past week! With the Ethereum Merge coming up this month, many PoW consensus enthusiasts seem to have pumped the price of Ethereum Classic.
Ethereum Classic (ETC) Pump
This past week, the new Ethereum fork, Ethereum Classic, or ETC, has been seeing quite a surge in it’s price, pumping by as much as 18% according to CoinMarketCap at the time of writing.
It’s most impressive feat was seen on September 6th, when the token pumped by up to 28% within the span of 24 hours to a price of $41. At that time, ETC even managed to see its hashrate hit an all-time-high of over 48.64 terahashes per second, smashing its previous record of 28 TH/s that was set back in April.
Reason For Its Pump
— ETC Sage Capital (@EtcSage) September 8, 2022
The Ethereum Classic fork was originally created back in 2016, after a hack caused massive changes to be made in which Ethereum experienced a hard fork creating the current Ethereum fork as well as Ethereum Classic which is made up of the original Ethereum chain.
And now, the reason for Ethereum’s big pumps recently are quite obviously linked to the upcoming Ethereum Merge that is set to take place this mid-September.
With Ethereum changing from a Proof-of-Work consensus to a Proof-of-Stake consensus, those who disagree with the change, most of which are Ethereum miners, have mostly decided to move to Ethereum Classic, where they will continue to be able to mine the cryptocurrency, unlike the new PoS Fork.
According to CoinDesk, Hosam Maxawi, a co-founder at NFT Project Snook says “Post-Ethereum Merge, the Ethereum PoW miners will need to mine other coins since Ethereum is moving to PoS. The options are Ethereum Classic or some new Ethereum fork.“
However, many crypto analysts say that with the difficulty of creating a new Ethereum fork that has no guarantee of being successful, it’s more likely that miners and other members of the community that wish to continue using a PoW consensus will move towards ETC due to the fact that it’s continuously worked well since it was first forked.
Because of this, with the Ethereum Merge expected to take place on September 15th, many are expecting ETC to continue pumping somewhat as long as there is a demand for an PoW Ethereum chain.