Based on CoinMarketCap data on Friday, the price for ETHW tokens from Ethereum’s proof-of work fork has dropped dropped Since the launch of its mainnet softfork on September 15th, after the much-anticipated Ethereum Merge, the company’s shares have increased by more than 65%
ETHW surged to $60.68 during the early hours of Thursday morning after The Merge. According to CoinMarketCap, the tokens traded at $12.80 at the time of writing. This represents a 61% loss in 24 hours.
The lowest price that ETHW traded hands was $8.20. The tokens traded at $42 before the Merge, but fell as much 78% to as low $8.20 in European early hours Friday.
ETHPoW, a Proof-of-Work (PoW), is a separate blockchain. It was created from Ethereum’s Merge on Sept 15. Its launch was marred by technical problems that put downward pressure on the ETHW token.
The team behind ETHPoW recognized the issue and fixed the network’s ChainID later on the same day. Several miners abandoned the network, despite several major pools still mining the PoW chain.
As a consequence, Friday’s ETHPoW hashrate fell to 66.64 TH/s after peaking at 80.56 TH/s earlier on the day.
During this time, hash rates for other PoW options for Ethereum miners, such as Ravencoin, Ethereum Classic (ETC), and Ergo, experienced unprecedented highs following the merger. After Ethereum’s successful merge, miners started switching their rigs to other blockchains such as the above mentioned.
According to data from crypto mining pool 2miners, the Ravencoin blockchain’s hashrate doubled from 8.29 TH/s to 18.47 THs over the past 24 hours.
Ergo (ERG), another PoW-based blockchain that supports GPU mining saw its hash rate increase by more than 372% over the past 24 hours, from 29.05 THB/s to 157.56 THB/s. ERG, Ergo’s native currency, has seen a 14.51% increase to $4.93 in the last 24 hours.
Eric Wall, Chief Investment Officer of cryptocurrency investment firm Arcane Assets explained that ETHPoW miner could not support the chain at current ETHW price. He further added: “The daily rewards are 13100 ETH, $354k instead of $20m. It is impossible for miners to just ‘keep mining the ETHPoW ETHPoW chains’, regardless of how hard you adjust them. There simply aren’t enough rewards in the system to pay for the electricity bills.”
The price of ETHW dropped in the last 24 hours due to users receiving the tokens and immediately selling them on the open markets. These tokens are listed on major cryptocurrency exchanges like Huobi, FTX, and OKX.
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