Why Ethereum Classic's [ETC] post-merge ‘high' is wearing off

The transition of the Ethereum network into a proof-of-stake consensus mechanism on 15 September caused some Ethereum-linked assets to record growth.  Following the merge, Ethereum Classic saw a boom in mining activity on its network as former miners on the Ethereum mainnet sought new homes.

Timeline of Ethereum-classic

Ethereum classic fell to a two-month low to start the week, as prices in the cryptocurrency market continue to decline. Uniswap also slipped to a multi-month low on Monday, as the token hit its weakest level since July. As of writing, the global crypto market cap is down 5.

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice. Over the last two months, Ethereum Classic [ETC] saw a choppy movement as it compressed in the $30-$43 range.

Quick Take The hashrates of multiple proof-of-work networks such as Ethereum Classic surged to record levels on the day of The Merge. Ether borrow rates have returned to normal levels as speculators unwound their positions. Total ether supply increased due to low network activities despite a 90% reduction in issuance.

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice. Within the span of two weeks, Ethereum Classic [ETH] witnessed six moves on the price charts that measured more than 10% in magnitude.

After a successful Ethereum [ETH] Merge, Ethereum Classic [ETC] traders continued in their quest to profit from the market. However, it seemed that the outcome had been disastrous after there was over $880 million liquidated in less than five hours.

The hash rate of Ethereum Classic, a proof-of-work blockchain, has significantly increased as miners abandon the now proof-of-stake Ethereum. Its hash rate, which measures the output of cryptocurrency mining, increased to 183 terahashes per second (TH/s) on Thursday, 280% more than the 64 TH/s hash rate from the previous day.

On September 15 at 06:42:42 UTC at block 15537393, the Ethereum mainnet merged with Ethereum's Beacon Chain to complete the widely-anticipated Merge upgrade. The move marked the network's transition to a Proof-of-Stake consensus protocol, and led to surging interest in Ethereum Classic ($ETC) and a little-known altcoin.

The Ethereum Merge was an incredibly anticipated upgrade, with good reason. It not only drastically increased the number of transactions that the network could handle, but it also greatly diminished the energy consumption of the network.

Miners have already switched to Ethereum Classic (ETC) as Ethereum (ETH) successfully transition to proof-of-stake (PoS) and made miners obsolete. In the last 24 hours, the Ethereum Classic (ETC) price has soared over 10% and the hash rate has jumped over 290 TH/s.

Since The Merge, a lot of hash rate has flown to Ethereum Classic — as miners are no longer able to mine Ethereum. The post Ethereum Classic's hash rate soars 280% in a single day appeared first on The Block.