Ethereum

ETC (Ethereum Classic) Soars When The Merge Is Approaching

It seems that the majority of miners have started converting their mining to Ethereum Classic (ETC) after Ethereum (ETH) has set a specific date for the consolidation to Proof-of-Stake (PoS).

Why ETC “pumps”?

ETH moves to PoS as well as announcing Ethereum’s The Merge event will likely take place on September 19 if there are no technical failures. This reason has created a powerful launchpad for Ethereum price to grow impressively despite the correction of Bitcoin (BTC), going from the price of $1,000 to a 6-week high at $1,422.91.

1H chart of ETH/USDT price. Source: Binance

Unexpectedly, the factor driving the ETH price also became a key driver supporting the ETC price breakout, just like the previous one in March 2022. At press time, ETC is trading around $21.43, up 22.9% over the past 24 hours.

1H price chart ETC/USDT price. Source: Binance

The reason this “contradictory” interaction took place is because when Ethereum was put on the PoS consensus mechanism, the previous ETH mining system with Proof-of-Work (PoW), using specialized mining equipment will be delisted and will instead be staked ETH to become a validator of the transaction.

As a result, miners currently using ETH miners are forced to switch to another PoW coin to avoid their equipment becoming “a pile of scrap”. And that choice is none other than ETC.

On the other hand, Bitmain – one of the largest Bitcoin miner manufacturers in the world also plays a very important role in this price pump of ETC. On July 7, Bitcoin unexpectedly launched a new line of miners called Antminer E9. Only in the first week of launch, Antminer E9 immediately “sold out“.

However, the question is, why is a Bitcoin “whale” like Bitmain launching a new specialized product to mine mainly Ethereum at this time in the context that ETH is about to move to PoS? Therefore, the community probably assumes that Bitmain is pushing its interest in ETC. And of course, the “bizarre” action from Bitmain made investors really FOMO ETC during this period.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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