Ethereum classic interest peaks, price set to rise.

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Markets have seen a strong correction in regards to the proposed Ethereum merger this week, and Ethereum Classic has established itself as an unexpected frontrunner. ETC-USDT accumulated open interest on Binance and OKX recently recorded an all-time high of $350 million on September 6, marking the launch of the latest Bellatrix update.

What is Ethereum Classic?

Ethereum Classic was the result of a hard fork on the main Ethereum blockchain after the DAO attack in 2015. Although ETC is a continuation of the previous chain, ETH is the new version. While Ethereum continues to peak in value, adoption, and applications, Ethereum Classic’s growth has been significantly hindered.

This has changed dramatically in recent months, with more and more developers shifting their focus from ETH to ETC.

ETC crypto has grown almost sixfold since July. The most recent peak result, ETC, broke the Hashrate record of 28 TH/s in April 2022. Hashrate is a measure of the capacity of a computer or mining system and is expressed in Terahash. The higher the risk, the more difficult and expensive it is to gain network control, and the greater the security risks.

What caused the rise in the price of Ethereum Classic?

This notable push is connected to the long-awaited move to the stock benchmark from the Ethereum network. Users holding ETH (validators) are responsible for adding new blocks to the chain, replacing energy-intensive mining. This prompted Ethereum miners to look for alternatives to Ethereum, the proof-of-concept version of Ethereum Classic (ETC) that appeared in 2016.

Ethereum Classic price today

Ethereum Classic traded at $37.31 with a 24-hour trading volume of $1,427 million

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As traders try to capitalize on and disrupt the biggest Ethereum network upgrade in years, derivatives markets are reflecting the changes in the mineral’s fortunes. Funding volume on ETCs has increased, indicating an increase in demand for long positions. On the other hand, ETH’s financial volume is dipping into negative territory, indicating a combination of bearishness and excessive hedging.

At the same time, the price volatility of Bitcoin and Ethereum has led investors to turn their attention to other tokens to diversify their portfolios. This element has helped ETC gain some attention as it has successfully demonstrated its ability to generate returns thus far.

Generally, large amounts of capital will be pumped into ETC perpetual futures contracts, with the Hashrate peak indicating that the computing power of ETH POW miners has shifted to ETC. Further developments in the cryptosphere support this change, such as the announcement from F2Pool – the second largest ETH mining pool – that in September it will stop mining Ethereum and switch to Ethereum Classic.

Talk of the hour: Ethereum integration

The Ethereum blockchain has announced plans for a massive revolution that aims to align its technology with sustainability and reduce carbon emissions by more than 98%. The ‘Ethereum Merger’ will move from a more energy-intensive architecture in two stages – the first on September 6th, and the second between September 10th and September 20th.

Ethereum is moving from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) paradigm. ETH miners will be forced to shut down their mining operations completely or switch to other compatible PoW networks. Ethereum Classic is definitely the best option in this situation, which uses the same Ethereum Et-hash consensus algorithm.

As Ethereum intends to transition to PoS, Ethereum Classic is on its way to becoming the first smart programmatic blockchain with a final proof-of-work offering. The miners will be run on another network similar to Ethereum before the merger. ETC will therefore be one of the most significant winners of the Ethereum migration. The total number of coins is limited to 210 million, so the more coins are created the more valuable they will be.


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