Ethereum miners are exiting the leading altcoin project ETH. Instead, they are venturing into an altcoin that has sunk into oblivion. The Ether network will switch from the Proof-of-Work consensus mechanism to the Proof-of-Stake mechanism in September. Because of this, CPU and GPU mining users started to abandon Ethereum. The statements of ETH founder Vitalik Buterin also played an important role in the aforementioned exits. After all these events, the price of an old altcoin officially exploded.
Miners login to Ethereum Classic
The Ethereum network is preparing to migrate from the PoW model to the PoS model. PoS is quite different from the high energy PoW mining model. Accordingly, it stands out as a more environmentally friendly and sustainable model due to its low energy consumption and carbon emissions. As Cryptokoin.com reported, the transition of Ether to PoS will take place in September when the Merge upgrade will be released. As a result of all these developments, miners in the ETH network are switching to another altcoin project. This altcoin is called Ethereum Classic (ETC). There are many reasons behind the miners’ transition to ETC. In addition to this, a huge spike in ETC price emerged after the crossovers.
Why is the ETC price rising?
More miners continue to switch from Ethereum (ETH) to Ethereum Classic (ETC). As a result, ETC has managed to capture significant bullish moves in both adoption and price. ETC rumors within the crypto community have caused many investors to turn their attention to the altcoin. These rumors were coupled with increased miner activity on the network, which was sinking into oblivion. Thus, an explosion in demand ensued. As a result of the combination of all these elements, ETC has achieved a very strong rise. At the time of writing, Ethereum Classic is trading at $42.42, up 26.76% daily. Cryptocurrency has increased in value by over 63.5% in the last 7 days. However, data reveals that the altcoin has risen by 190% since July 16. As a result, ETC outperforms most leading altcoins in the crypto bear market.
What’s next for Ethereum Classic?
ETC is not just attracting miners exiting Ethereum. However, it also incorporates investor funds that it can use to develop itself. AntPool, one of the largest institutional miners, is among them. AntPool has pledged nearly $10 million worth of investment to support the development of the Ethereum Classic network. The aforementioned mutual funds seem to attract more miners, users and investors to ECH. If this happens, ETC price is likely to see significant gains in both the short and long term.
Vitalik Buterin: “You can emigrate”
It aims to turn old miners into network validators in the new PoS system of the ether network. Therefore, miners switching to ETC means a loss for ETH. However, Ethereum founder Vitalik Buterin welcomed the recent transitions quite moderately. He spoke on the subject at the EthCC event held in Paris. Buterin said, “You’re uncomfortable with Proof-of-Work. If so, you can migrate to Ethereum Classic because it is a good Blockchain.”
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